Prices of dairy products edged up in the latest GlobalDairyTrade auction, snapping two straight declines, as the volume sold rose to a two-month high.
The GDT Price Index, previously known as the GDT-TWI Price Index, rose 0.1 per cent compared to the last sale two weeks ago. The average winning price was US$4,805 a tonne compared to US$4,797 a tonne.
The average winning price of whole milk powder, the biggest product by volume, was unchanged at US$4,870 a tonne, the lowest since early July, and skim milk powder rose 0.7 per cent to US$4,583 a tonne. Cheddar rose 4.5 per cent to US$4,584 a tonne, the highest since early June, while rennet casein fell 5.4 per cent to US$9,418 a tonne.
This month Fonterra disclosed a $157 million provision against inventory of specialised ingredients and branded consumer products produced by NZ Milk Products division, saying rising input costs squeezed margins. It noted an increase for the reference products it uses to calculate the farmgate milk price compared to its value added products.