Fonterra’s latest online dairy auction has delivered good news for a New Zealand dairy sector feeling increasingly under pressure as prices have slid for the past four months, forcing a freeze in payout forecasts for dairy farmers.
A 16.9% jump in dairy prices comes as the FAO announces a new jump in global food prices on the back of reduced grain harvests, especially of wheat.
The average selling price of all dairy products in the auction increased to US$3562 (NZ$5009), up US$482 since the last auction a month ago.
As part of Fonterra’s planned changes to its online system, the next auction will be in two weeks, shortening the cycle by half.
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