In December, dairy, meat and horticulture prices all declined. That was offset to some degree by higher forestry and aluminium prices, while seafood prices were unchanged. International dairy prices fell 3.5% in December and in New Zealand dollar terms were back 5.6% for the month.
“Weakness centred on milk powder prices as general commodity sentiment, high European milk supply, weak Chinese import demand and other major importer/buyers generally being well stocked weighed on prices,” ANZ rural economist Con Williams said in his report. “Milk-fat products performed slightly better, with butter prices up 5.2%” for the month.
Non-dairy prices fell for an eighth consecutive month in December, down 0.2%. Beef slipped 4.9%, while wool declined 1.4%. That was partly offset by a 1.7% increase in lamb prices and a 2% rise in prices for skins and hides.
Horticulture prices dropped 3.6 percent, during the off-season for New Zealand’s major crops, Williams said.
A 4.6% gain in log prices lifted overall forestry prices, supported by lower Chinese inventory levels and strong domestic demand, he said.
