The Global Dairy Trade has fallen for the seventh consecutive time, down 1.3% today.
The main drops were in milk fat (-8.9%) and lactose (-2.8%). Whole milk powder fell 0.1% but has been falling since February this year.
It comes after it fell earlier this month by 4.3%, but is the least severe drop of the previous six drops.
That auction, on June 2, came on the back of a 2.2% drop two weeks ago and it is the sixth consecutive drop in prices. The last time the Global Dairy Trade returned a positive was on March 3.
The main drops earlier in June were in butter (-10%), milk fat (-7.4%), butter milk powder (-7.0%) and lactose (-6.9%).
The Globa lDairyTrade is an auction platform for internationally traded commodity dairy products, including skim and whole milk powders, anhydrous milk fat, butter and butter milk powder, cheese, lactose and casein products.
Recently, the CEO of Fonterra, Theo Spierings, said he is concerned about the global demand for dairy but expects global demand for dairy to bounce back.
“I am concerned about demand. Supply is good all over the world. Europe, with the end of quotas, is only 1% up on last year, so it’s not a massive increase…but less and less milk is around, when we had signals of drought the price climbed.
“That implies that there is not a lot of inventory around. So people are holding back, but demand has to come back in. In China, the middle class is growing, and all the demographics are speaking for a growth strategy and demand will come back.”