[6 July/ Otago Daily Times]

In this week’s GlobalDairyTrade auction, whole milk powder increased 2.6 percent, against an overall 0.4 percent decline. This went against futures prices before the auction,¬†predicting whole milk prices to decrease 2 percent. The WMP increase cancelled out the previous auction’s 3.3 percent drop and ASB Senior Rural Economist Nathan Penny said this trend was expected to continue until at least Spring. Fonterra set its new season production growth forecast at 3 percent; however, ASB was expecting production growth of 4 percent. The New Zealand Dairy Companies Review said Fonterra’s market share had decreased steadily since its 2002 establishment, to its current 84 percent, while Westland and Tatua’s market share remained at 4 percent and new processors had grown to a 12 percent share. Westpac Acting Chief Economist Michael Gordon said global dairy demand continued to grow and stockpiles of milk powder remained substantial, especially in Europe.