Global dairy markets show good signs as northern hemisphere production tightens

Global dairy markets are showing encouraging signs, according to some agricultural economists. Although prices were down slightly at the Global Dairy Trade auction on September 3, they are still well up on the same time last year. Uncertainty about milk production in the northern hemisphere is also helping support prices. The GDT price index was down 0.4 per cent at the first auction in September, after big surges in the August auctions. The fall was mostly down to a 2.5pc drop in the whole milk powder price. But anhydrous milkfat (up 0.7pc), buttermilk (up 8.4pc), cheddar (up 0.9pc), mozzarella (up 7pc) and skim milk powder (up 4.5pc) all posted gains. Westpac's New Zealand senior economist Michael Gordon said the bank had lifted its forecast NZ farmgate price due to improving market conditions in the past few months. This reflected three positive factors. "First, world dairy prices have been fairly resilient in recent months, giving us more confidence about the outlook for the ...