New Zealand dairy giant Fonterra said today (3 June) that June dairy prices dropped across all contracts as a result of lower demand and increased “market uncertainty”.

Commenting on the company’s June online trading event, globalDairyTrade, Kelvin Wickham, MD of Fonterra GlobalTrade, suggested that the global market for dairy was likely to remain “weak” until consumer demand picks up.

“We need a sustained pick-up in customer and consumer demand to see any meaningful recovery in prices and that is not occurring as fast as we would like. And there’s increased uncertainty in the market because of the recent announcement of US subsidies and talk of European retaliation,” he said.

CRA International advised Fonterra that the average price achieved across all products and contract periods for Whole Milk Powder (WMP) was US$1,886 per tonne FAS New Zealand Port. This was 12% lower than for the previous trading event in May.