Whole Milk Powder (WMP) Prices Stabilize as Milk Prices Settles in W50 for the New Zealand Market

After strong demand and high milk prices in the past year in New Zealand, the forecasts show that this situation will be different in the current 2022/23 season and the 2023/24 seasons. It shows that milk prizes will stabilize at around USD 5.50/kg (NZD 8.70/kg) for the current season and at USD 5.69/kg (NZD 9.00/kg) for the 2023/24 season. This phenomenon is due to a weak global economy, a decrease in global demand, and problems regarding the supply chain. It will equate to a WMP price of around USD 3.5K/MT. The global production conditions are forecasted to improve after severe droughts which might increase volumes and contribute to this projected slowdown in milk prices and might result in even lower than expected farm gate prices.