Holding prices with 10% more milk an outstanding effort

On 15 December 2010 the globalDairyTrade trade-weighted product price was US$3690 per tonne.  Amazingly. the corresponding period in 2011, December 20th, the average winning price was an almost identical $3688 per tonne.

From this point last year, dairy prices took off.  By 1st of March prices had risen 30%.  And although they feel back from here this was the impetus to lift the milk price to $7.60/kg milksolids last year.

Most think that there won't be such an increase in the New Year.  But as noted in this morning's Dominion newspaper, December stands to be a record export month for dairy - a combination of good prices and a 10% increase in milk supply.

The latter point makes dairy's relative strength very impressive.  That the market can absorb 10% more milk without effecting prices is an outstanding effort.