COVID-19: Global dairy prices rise slightly as 'new normal' begins around the world

Prices edged up 0.1 percent in the latest Global Dairy Trade auction.
Prices edged up 0.1 percent in the latest Global Dairy Trade auction. Photo credit: Getty

Global dairy prices edged up 0.1 percent overnight to US$2902 per metric tonne in the latest Global Dairy Trade auction. 

But despite the overall lift, most prices fell slightly.

Cheese prices were down 5 percent, butter dropped 4 percent and skim milk powder 0.5 percent, while whole milk powder prices rose 2.1 percent and butter milk powder was up 9.4 percent.

Rabobank dairy analyst Tom Bailey said the mixed results reflect that buyers across the globe are in different stages of reopening their economies following COVID-19 pandemic lockdowns and the "new normal" gets underway.

The overall rise was due to China, which typically leads demand for dairy, continuing to improve economically following its coronavirus lockdown.

According to Rabobank, significant domestic stockpiles of milkpowder remain in China, meaning demand for imported powders could drop later in the year.

The latest prices follow a 1 percent rise in the previous auction.

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