According to the latest data released by the Global Dairy Trade Platform, the global dairy trade price index rose by 4.2% and the skimmed milk powder trade price rose by 10.3%.
Fonterra Chief Executive Miles Herrier believes that China's strong demand for whole and skim dairy products at the end of 2018 is an important reason for rising prices.
Data show that the transaction price of milk powder with indicative significance is $2777 per ton, up 3%. The price of whole milk powder is an important reference index for large dairy enterprises such as Fonterra in New Zealand to determine the purchase price of raw milk.
Herrier believes that the global dairy index has risen better than expected. He also said that the sharp rise in the price of skimmed milk powder was closely related to the decline in milk production caused by high temperatures in European producing areas.
Global dairy trade platform is composed of international dairy sellers headed by Fonterra. Dairy auctions are usually organized every two weeks. Buyers are located in more than 90 countries and regions around the world. The auction price directly affects the global dairy price.
