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Soaring Butter Prices At Global Dairy Trade

Wednesday, 18 April 2018 at 12:38pm

The latest Global Dairy Trade Auction saw Butter prices lift again.  So far this year they have lifted 27%, which is well ahead of the where prices were this time last year, with  prices rising quicky in April.  At the latest GDT auction, butter milk powder soared 21.8 per cent to US$1,859 a tonne, while rennet casein jumped 10.4 percent to US$6,775 a tonne.  Anhydrous milk fat gained 4.7 percent to US$6,185 a tonne, while cheddar added 4.6 percent to US$3,666 a tonne. Butter increased 1.1 per cent to US$4,911 a tonne, while lactose rose 1.1 per cent to US$941 a tonne.  Bucking the trend, skim milk powder slipped 0.9 per cent to US$1,982 a tonne.

Current Butter prices are only 5% below the record levels set back in September 2017.  Economists anticipate butter prices will shatter last year’s records over coming months.

As quoted on Interest.co.nz website, ASB senior rural economist Nathan Penny sees the latest rise in butter prices as "offering some upside chance for the milk price to farmers."

Fonterra's price forecast for the current season is $6.55 per kilogram of milk solids. 

Read the full article on the Interest.co.nz website