On the global dairy trading floor, in the second session of the first month of 2019 (held twice a month) on January 15, 2019, GDT milk price index increased to an average of 3,057 USD / ton. , an increase of 4.2% from the previous session (January 3, 2019) – this is the fourth consecutive increase since early December 2018.
In the session of all types of dairy products, prices increased compared to the previous session, whereby skim milk powder increased by 10.3% to 2,405 USD / ton, secondly, Lactose increased 7.9% to 1,032 USD / ton. Next, avocado increased by 4.6% to USD 4,262 / ton, Cheddar cheese increased by 4.2% to USD 3,504 / ton and 3% of whole milk powder reached USD 2,777 / ton.
Only Rennet Casein dropped 1.4% to 5,047 USD / ton.
A total of 27,909 thousand tons were sold during the session.
Milk prices in the world market
This time transactions in the Australian dairy market were sparse due to Christmas and New Year celebrations. In some parts of Australia, rainy weather promises farmers a favorable production season. However, in other areas drought continues to be forced to import hay.
New Zealand’s milk production in October 2018 increased by 1% compared to October 2017. The first half of the 2018-19 season increased by 4% compared to the end of the crop from June to November 2017.
In 2019 Fonterra made a proposal for all its members, offering milk from March until December at a fixed monthly price, announced on Friday of the week with the second GDT event each month.
Dairy producers will have time until Monday to decide whether to accept a fixed price or not. They can commit up to 50% of production and members plan to offer a fixed price for 5% of milk supply from New Zealand. Prices will be re-referenced to New Zealand’s future market price.
In China, the country’s milk imports increased by 12.4% in October 2018 thanks to favorable prices. Powdered milk, use of lactose and packaged milk (bag milk) have increased significantly, while formula milk has decreased. In general, in the first 10 months of 2018, China’s milk imports increased by 3.6% in volume and 6.5% in value. EU-28 is still the main supplier of China, followed by New Zealand. US exports remained stable although trade tension between the US and China has not yet ended for taxes.
The main countries export milk to the Chinese market
(10 months of 2018 compared to the same period in 2017)
Unit: Thousand tons