Global prices rise again due to slowing milk production

Slowing milk production in the northern half of the world has led to the second highest price rise in 14 months in the GlobalDairyTrade auction conducted by Fonterra of New Zealand.

Prices rose last week by 3.5% on average, despite growth in volumes of product for sale. Buyers paid 3.5% more for whole milk powder.

Analysts say the price trend may be driven by high US prices, which are rising due to that production region’s slowing growth in the face of a feed costs outlook described as “almost intolerable”.