Fonterra has revealed that wholemilk powder prices jumped 24% in its latest online auction.
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The New Zealand dairy giant said the average price achieved at yesterday’s (2 September) auction was US$2858 per tonne, lifting prices back to where they were a year ago.
The news follows a 26% increase in prices in Fonterra’s previous monthly online sales event as prices for skimmed-milk powder, anhydrous milkfat and butter have begun to strengthen on global commodities markets.
Kelvin Wickham, managing director, Fonterra Global Trade, said the lift was higher than expected.
“However, we anticipated whole milk powder prices would lead the recovery because of low global inventories and firming demand,” he siad.
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By GlobalData“With demand returning, our customers have more confidence in refilling their supply chains. But it remains to be seen whether demand has returned to sustainable growth.”
