The prospects of an early revival in dairy prices have taken
another hit. The Global Dairy Trade index was down 10.7% at last week’s
auction, and the all-important whole milk powder price (which is responsible
for about 75% of Fonterra's farmgate milk price) was down 13.1% to US$1,848,
the largest fall in 12 months.
The whole milk powder price is now at its lowest level in
six years, down 65% from its peak of US$5,245 in April 2013, and a long way
from Fonterra's forecast price of US$3,500 a tonne.
