18 Mar 2020

Global dairy prices drop amid coronavirus disruption

8:05 am on 18 March 2020

Prices fell to their lowest level in more than a year in the global dairy auction as the Covid-19 pandemic seemed to disrupt buying.

Spoon with infant formula

Dairy powder prices were markedly lower. Photo: 123rf

The average price at the overnight auction fell 3.9 percent to $US2980 a tonne.

It follows the 1.2 percent fall the previous auction two weeks ago.

Prices have fallen in each of the past four auctions.

Most of the products offered rose in price, but dairy powders were markedly lower.

The price of wholemilk powder, which strongly influences the payouts for local farmers, fell 4.2 percent to $US2797 a tonne.

That is the weakest since January last year, and below the breakeven point for many farmers.

Volumes sold were lower.