'Unheard of for GDT': Latest GDT Update Yields Record-Breaking Results

'Unheard of for GDT': Latest GDT Update Yields Record-Breaking Results

Stu Davison from High Ground Dairy joins Dom George for their regular discussion following the latest Global Dairy Trade Auction which saw just a 0.1% overall value increase on the previous auction. 

Cheddar (Ched) had the biggest fluctuation down 8.5%, Butter was down 1.4 % while Skim Milk Powder (SMP) remained unchanged. Whole Milk Powder (WMP) saw a minor increase of just 0.4% alongside Anhydrous Milk Fat (AMF) which was up 1.7%.

The conversation begins with an in-depth analysis of the Global Dairy Trade (GDT) auction, where Davison illuminates the audience with his expert take on the negligible uptick in dairy prices. 

"The key one for the Kiwi perspective, [is] whole milk powder holding ground."

Davison underscores the importance of stability in whole milk powder prices and delves into the strong demand for New Zealand's skim milk powder, which he emphasises as having a premium over European products. A significant insight Davison shares is the unprecedented 16th consecutive price increase for Anhydrous Milk Fat (AMF), which he described as "unheard of for GDT." 

Furthermore, he touches on the volatility in the cheddar market, highlighting the reduced demand for cheese globally and suggesting broader implications of consumer behaviour amid inflation. Transitioning from dairy economics to geopolitics, Davison comments on the Middle East's increased presence in dairy buying amidst tensions, such as the Iran-Israel conflict. 

He explains the potential implications of such geopolitical events on the dairy trade.

"Usually in war times or times of conflict, buyers want security of supply, so we saw a bit of that, but the other one too is the concern around logistics"

His observations extend to logistical challenges faced in the region, which are exacerbated by conflicts and can significantly impact global trade routes. 

Listen to the full chat between Stu Davison and Dominic George above.

To check out more episodes listen to the REX Podcast anytime on your favourite streaming platforms including Spotify, Apple Music and Rova.

Visit the Rural Exchange Facebook or Instagram page for more information and regular updates from the REX team.