“In the most recent Global Dairy Trade (GDT) auction, international milk prices and volumes experienced a significant boost, offering promising prospects for the dairy industry. The GDT Price Index surged by 2.7%, reaching an average selling price of $2,888 per tonne. GDT Events reported this positive shift after a recent 7.4% decline in the GDT Price Index during the previous auction. The average selling price was at $2,875 in the previous action, held on August 15,
What’s particularly noteworthy is the substantial increase in the quantity of dairy products sold at this auction. The auction platform confirmed that it successfully sold approximately 37,729 tonnes of dairy products. This reflects an impressive uptick of approximately 12.4% compared to the previous sale.
Implications of Global Dairy Trade :
These auction results have implications beyond the dairy sector, as they can significantly influence the value of the New Zealand dollar. This is because the dairy industry contributes significantly to New Zealand’s gross domestic product (GDP), accounting for more than 7% of the nation’s economic output.
New Zealand’s prominent milk cooperative, owned by approximately 10,500 farmers, holds a dominant position in the global dairy trade. It controls nearly one-third of the market share.
Noteworthy Points :
It’s important to note that although New Zealand’s Fonterra Co-operative Group Ltd. owns GDT Events, it operates independently from the dairy giant. CRA International Inc., a U.S.-listed company, oversees the trading management for the Global Dairy Trade auction. These auctions take place bi-monthly, and the next one is scheduled for September 19, promising further insights into the evolving landscape of international dairy trade.
The encouraging upswing in milk prices and volumes witnessed at the GDT auction reflects the dairy sector’s resilience and growth potential. Over the past five years, the GDT has consistently demonstrated its ability to adapt to market dynamics, serving as a stabilizing force in the dairy industry. This positive trajectory is promising for dairy stakeholders globally, underscoring the vital role of the industry in the stability and growth of the global economy.”
