Global dairy product prices fall amid geopolitical uncertainty

Wellington (ANTARA) - Global dairy product prices continued to decline in the latest auction session last night, amid abundant supply and geopolitical tensions that are weakening demand and raising costs.

The average price at the Global Dairy Trade (GDT) auction, held every two weeks, fell 2.7% to US$4,143 (US$1 = Rp17,142) per tonne, following a 3.4% drop in the previous session, which was the first decline this year, according to the GDT Events Results released on Tuesday (21/4).

Head of the Dairy Data & Insights team at New Zealand’s Exchange (NZX), Cristina Alvarado, quoted by Radio New Zealand on Wednesday (22/4), said that global supply remains plentiful despite seasonal milk production declines in New Zealand.

Meanwhile, stable output in Europe is further intensifying downward pressure on dairy fat prices.

“Geopolitical tensions related to conflicts involving Iran are contributing to increased shipping, insurance, and production input costs,” Alvarado said.

She stated that disruptions around the Strait of Hormuz and high oil prices are adding uncertainty, prompting many buyers to postpone purchases in the hope that costs will fall and logistics will become clearer.