Global Dairy Trade Event 350 has concluded with a 0.5% increase in the GDT Price Index.
Dairy Analyst Stu Davison joins Dom George to further explain the outcomes of the latest auction including some of the most notable talking points.
"The last event was a little bit more surprising to the upside, which is always a good thing," Davison reflects on the previous auction results.
He also analyses the Cheddar index's volatility and regional purchasing patterns following its 7.6% downturn.
"North Asia, re China, did take the most cheese at this one …. There wasn't a lot of competition in the cheese market," he says.
"We expect the volatility with cheese and it's playing true to form."
A significant portion of the discussion revolves around the repercussions of the Canadian trade dispute on New Zealand dairy farmers. Davison highlights the serious financial impact.
"The year that it was calculated, Canadians dumping skim milk powder into the world market cost the average Kiwi farmer about 28 cents per kilo of milk solids in that season."
The conversation touches upon the broader implications of fair trade agreements like the CPTPP and anticipates potential political shifts in Canada that could affect trade dynamics.
"It's a fun one to watch and incredible considering your little country like New Zealand taking on Canada and, you know, assuming that, like you said, trade negotiations and agreements should hold, we should be able to win this one pretty easily."
Anhydrous Milk Fat (AMF) saw the most positive change, up 8.6% followed by Skim Milk Powder (SMP) up 1.3% and Butter up 0.1%.
Cheddar (Ched) saw the most significant drop in price at 7.6%, while Whole Milk Powder (WMP) and Lactose (Lac) were also both down by 1% and 0.1% respectively.
Mozzarella (Mozz) saw a 5.3% increase while Butter Milk Powder (BMP) did not register a price.
The conversation provides a rare glimpse into the complex world of dairy trade, offering expert insights into the economic, political, and cultural forces that shape this global industry.
Listen to the full chat between Stu Davison and Dominic George above.
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