Rising demand gives milk prices a boost: Fonterra
The latest trading event by Fonterra has showed the turnaround in dairy prices is gaining momentum.
globalDairyTrade, Fonterra’s internet-based sales platform, concluded its October trading event this morning with average prices for Whole Milk Powder up 5.7%.
Kelvin Wickham, Managing Director of Fonterra Global Trade, said it was expected prices would need to consolidate after the recent sharp rises.
“We’ve seen a rebalancing in the market and we see market fundamentals supporting prices around their current levels,” Mr Wickham said. “In particular there’s been keener demand from customers and a tighter supply situation for most products.”
Mr Wickham cautioned that although it was good to see prices firmer there remained a level of uncertainty given many economies were only beginning to recover from recession.
“With prices at these levels we hope to see reduced subsidies and intervention by overseas governments.”
