Fonterra Cooperative Group, the world's largest dairy exporter, slashed its forecast payment to New Zealand farmers after a drop in demand from Chinese buyers. The midpoint of the projected payment range in the 2023-24 season is now NZ$7 ($4.25) per kilogram of milksolids, down from NZ$8 previously, the Auckland-based company said Friday. "Since then, overall GlobalDairyTrade whole milk powder prices have fallen by 12%, and China's share of whole milk powder volumes on GDT events has tracked below average levels." Whole milk powder prices at the GDT auction this week fell to a three-year low, and have tumbled almost 40% from a record in March 2022. Economists had noted that ongoing sluggishness in the Chinese economy meant a downtrend in global dairy prices had been sustained much longer than expected.

Source: Irish Independent August 04, 2023 07:46 UTC