The GDT price index dropped 8.9% to US$3309 a tonne, from US$3595/t two weeks ago. About 36,656t of product was sold, down from 41,513t two weeks ago.
New Zealand’s regional economies are milking the dairy industry, taking NZ$14.3 billion in total in 2013-14 – a 40% increase in earnings – DairyNZ figures showed earlier this week.
In total, it’s estimated the New Zealand economy earned NZ$17.6 billion from dairy exports that year.
In the latest GDT auction, whole milk powder shed 10.9% to US$3088/t. Anhydrous milk fat dropped 10% to US$3250, while rennet casein fell 8.9% to US$9761/t.
Skim milk powder slumped 7.1% to US$3516/t and butter milk powder declined 4.6% to US$4426/t.
Cheddar slipped 1.6% to US$4164/t and butter fell 1.1% to US$3144/t.
Neither lactose nor milk protein concentrate were offered at the event.
The New Zealand dollar was trading at US 0.8816 before the release. It dropped as low as 0.8750 and was recently trading at 0.8765.
There were 144 winning bidders out of 177 participating bidders at the 13-round auction. The number of qualified bidders fell to 663 from 702 at the last auction.
Agrifax Senior Dairy Analyst Susan Kilsby on Radio New Zealand morning report:
