Ann: Market update, page-50

FEBRUARY 4 2019 - 4:18PM
Bega Cheese cheddar named champion at Australian Grand Dairy Award
Albert McKnight........
https://www.begadistrictnews.com.au...ed-champion-at-australian-grand-dairy-awards/



As a bit of an aside as it is not “on our patch”, another reminder of the trend out there at the grass roots level :http://adf.farmonline.com.au/news/m...audesert-dairy-farmer-pulls-plug/2758328.aspx

Sad for farmers driven out of business yet on the bright side for Bega is if it is able to secure it’s  supplies, the future looks bright - less dairy farms across the globe means milk grows ever more valuable

“Global dairy prices surge

• CARLENE DOWIE
  07 Feb, 2019 10:40 AM
  
  
  Tweet
  
  It appeared dairy markets were factoring in the risk of drought in NZ disrupting production.
  
  The Global Dairy Trade price index has recorded five consecutive rises. Source: Global Dairy Trade
  
  
  Global dairy prices surged on Wednesday night with the Global Dairy Trade auction recording its biggest jump in more than two years.
  
  The GDT price index lifted 6.7 per cent, the biggest increase since November 2016.
  
  The lift was the fifth consecutive rise with the $US3265-a-tonne average price back to the same level as June last year before prices began a slow descent.
  
  The rise surprised pundits, who had been forecasting a slight decline.
  
  New Zealand-based ASB bank's senior rural economist Nathan Penny said it appeared dairy markets were factoring in the risk of drought in NZ disrupting production.
  
  "This morning’s auction was one of those cases where we were happy to be wrong," he said.
  
  "Indeed, in contrast to our expectations for a small fall, dairy prices spiked higher, with whole milk powder prices posting their largest price lift in over two years."
  
  NZ had been in the midst of a heat wave in many parts of the country, including dairying regions, in recent weeks.
  
  "Indeed, there is a material risk that this escalates into a drought and stymies production over the remainder of summer and into the autumn," Mr Penny said.
  
  Most categories were up at the auction, led by WMP, which increased 8.4pc to $US3027/t.
  
  Skim milk powder was up 3.9pc and cheddar was up 1.4pc.
  
  Only butter milk powder defied the trend, down 3.1pc to $US3158/t. “
  
  http://adf.farmonline.com.au/news/m...eneral/global-dairy-prices-surge/2758333.aspx