GDT rises 2.2% amid renewed production concerns

Published 3 January 18

At the end of last month Fonterra, New Zealand’s largest milk company*, revised their production forecast down yet again. It has now gone from being in line with 2016/17** collections to 4% below, at around 16.8bn litres. This is due to a wet start to the season and recent dry conditions, which are expected to continue. Fonterra also subsequently reduced the amount of WMP on offer for the 2 January Global Dairy Trade (GDT) event, which may have contributed to the 4.2% increase in the WMP price index.

2018.01.04 fonterra production

This latest GDT event resulted in a 2.2% rise in the overall price index, following a number of reductions in previous events. It was driven by price index increases in WMP and SMP, which together account for about three quarters of product sold.

2018.01.04 GDT table

*Fonterra collects around 85% of New Zealand milk
**Please note the New Zealand milk year runs from June to May.