20 Jan 2016

Dairy prices dip again

7:40 am on 20 January 2016
Friesian cow.

Photo: RNZ / Alexander Robertson

Prices dipped slightly in the global dairy trade auction overnight.

The overall price index fell 1.4 percent to $US2405 per tonne, and follows a 1.6 percent drop in the first auction of the year.

Whole milk powder eased by 0.5 percent to $US2188 per tonne.

That price is falling further away from the break-even range for farmers, who need it to reach about $US3000 or more. It has not been at that level since March last year.

Apart from butter milk powder and anhydrous milk fat, all other products sold at the fortnightly auction fell in price.

AgriHQ Dairy analyst Susan Kilsby said the auction results aligned with market expectations.

Ms Kilsby said global demand for dairy commodities continued to be weak compared to milk supply around the world.