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Butter was up almost 10 percent at the last international dairy trade auction of the year. (file image)
Picture: 123RF
Dairy costs have actually increased for the 3rd time in a row at the last worldwide dairy trade auction of the year.
The typical rate increased 2.3 percent to US$ 3388 a tonne, while the entire milk powder cost, which impacts the payments for regional farms, was up 2.9 percent to US$ 3207 a tonne.
Cheddar raised 6.9 percent and butter was up almost 10 percent.
NZX dairy expert Rosalind Crickett stated bullish outcomes were expected.
“In regards to purchasing activity, North Asia controlled at this occasion, getting the leading bidders’ area for both milk powders and butter, the Middle East kept their position as the leading bidder for anhydrous milk fat and cheddar.
“Overall, the outcome is pleasing to see for farmers and breaks the common grain of historic pattern at the last GDT occasion of the year, in which typically the index rate drops.”
Previously this month, dairy cooperative Fonterra raised its projection milk rate to $7.50 a kilo of milk solids.