Milk powder prices hit a record high in Tuesday night’s Global Dairy Trade Auction.
Following a massive 7.9% rise in the GDT price two weeks ago, the average per tonne cost of milk powder lifted to $4,540 US dollars, the highest price in Fonterra’s history.
The rise reflects a global climb in world food prices, meaning producers are getting good returns across nearly every sector in the primary market.
Fonterra CEO Andrew Ferrier told US news agency Bloomberg earlier this week that high milk powder prices have become “the new normal”.
Fonterra’s GDT Manager Paul Grave says there are no signs to suggest the market will weaken any time soon.
Mr Grave says in the wider context, global demand for food is considerably stronger than supply, which is an encouraging sign.
The next Global Dairy Trade Auction is on the 2nd of February.
Check out the result details here.
