[8 June/ Otago Daily Times]

Butter prices reached a record high of USD5631 per metric tonne in this week’s GlobalDairyTrade auction. Overall dairy prices lifted 0.6 percent, and the key whole milk powder price fell 2.9 percent. Anhydrous milk fat prices fell 1.2 percent from a record high. ASB Senior Rural Economist Nathan Penny said an increase in global demand for milk fats could be attributed to an acknowledgement by the scientific community that fats were no longer as bad for health. Global dairy supply is expected to lift this season, and global demand was likely to match this. Analysis from Rabobank said the USD200 per tonne New Zealand butter premium meant the United States now had significantly cheaper butter than the European Union and New Zealand. The ANZ commodity price index increased to 3.2 percent in May to be 26 percent higher than the same time last year.