Global Dairy Trade Defies Odds with Minor Increase In Latest Auction

Global Dairy Trade Defies Odds with Minor Increase In Latest Auction

Dairy expert Stu Davison joins Dom George providing keen insights into the latest shifts in dairy economics following the most recent Global Dairy Trade auction. 

The conversation kicked off with an in-depth discussion about the unexpected rise in the Global Dairy Trade (GDT) index by 1.8%, which was a surprise against market expectations. 

Davison shed light on the standout performance of cheddar cheese, which saw an 8% increase, "which is impressive," he said, aligning it with EU prices and benefitting Kiwi farmers with a rise in whole milk powder prices. 

He also highlighted the record-setting auction price for anhydrous milk fat (AMF) and the strong demand for butter. 

"Some buyer out there had a pretty desperate desire to get butter on a ship and get it into their hands pretty quickly and they paid a price and pushed their butter price up." 

The conversation then took a slight detour to address the minimal impact of the H5N1 bird flu on dairy markets, and geopolitical tensions, including Turkey's trade suspension with Israel. 

"It's actually got no effect at all," downplaying the direct impact on dairy while acknowledging that "geopolitical tension in the Middle East, Israel [and] Palestine at the minute has actually just ratcheted up again today." 

In addition to the primary topics, the conversation also featured a casual aside where Davison shared his experience at a Chicago pub enjoying Formula One, emphasising the joy of community in sports fandom, even beyond rugby. 

Overall, the conversation presented a blend of astute economic analysis and the lighter side of sports culture, demonstrating the interconnectedness of market dynamics and the human aspect of sports enthusiasm.

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

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