New Zealand: Signs China demand for dairy is picking up

Updated Nov 20, 2023
Recent economic data has been more positive than expected so this may translate into higher demand over time.
Each month the Milk Monitor delves into the dairy industry and gives us the lowdown on the good, the bad, the ugly and everything in between. The year is winding down, with three more Global Dairy Trade auctions left for 2023 at the time of going to press. Prices dipped 0.7% following the November 8 auction and 2.7% for whole milk powder, ending the run of four consecutive lifts. Westpac senior agri economist Nathan Penny says from that perspective, prices were due for a break. WMP prices had lifted 20% over that period, albeit off a steep fall. Following the November 8 fall, they tempered that lift to 17%. Penny says there are signs that demand in China is picking up. Also, WMP Contracts 4 and 5 (for delivery in four and five months’ time) were 8% and 9% higher, respectively, than Contract 1. “This is the clearest sign to date that the removal of the 10% tariff from January will boost Chinese demand,” he says in the bank’s Agri Update. Fonterra left its 2023-2024 forecast ...
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