Fonterra prices fall 12 per cent since last auction
Dairy group Fonterra saw prices down across all contract periods, in its June internet auction globalDairyTrade, 12 per cent lower than for the previous trading event in May.
The trading manager, CRA International, advised Fonterra that the average price achieved across all products and contract periods for Whole Milk Powder (WMP) was US$1,886 (AUS$2,291) per tonne FAS New Zealand Port. In May, prices ranged from US$1,795 (AUD$2,178) per tonne FAS to US$2,065 (AUD$2,506) per tonne FAS.
“Today’s result indicates lower demand for the longer-term contracts, and confirms our view that international dairy markets will remain weak until consumer demand improves,” said Kelvin Wickham, Managing Director of Fonterra GlobalTrade.
“We need a sustained pick-up in customer and consumer demand to see any meaningful recovery in prices and that is not occurring as fast as we would like. And there’s increased uncertainty in the market because of the recent announcement of US subsidies and talk of European retaliation,” he said.