Dairy prices rise again

Dairy prices continue to improve, modestly. In fact they have mostly risen through this year.

The latest Global Dairy Trade index is up another 7.7% which adds to a promising trend. This is said to be in part due to a tightening of global supplies.

gdt2016sep6index

Ten year trends:

gdt2016sep610yr

Promising.

 

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8 Comments

  1. Oh, thank goodness. We’re going to be all right. Lactose to the rescue.

    Soon interest rates can go up too ….

    We’ll be a ‘rock star’ economy again …

    Reply
  2. Do I detect a certain cynicism in your comment PZ? Have you looked at the level of debt in NZ, by that I mean Bank Debt, Household debt combined. It makes my eyes water because it is reflected in the value attributed to our ownership of Auckland Housing, and how real is that?

    Reply
    • Alan Wilkinson

       /  7th September 2016

      Excessive building costs are real and inflexible so long as building legislation and regulation remains unchanged. Excessive land prices are artificial, the product of strangled supply and will move with demand and future expectation of demand so long as planning legislation and regulation remains unchanged.

      Reply
      • Alan. no argument from me for a comment that shows an understanding of Economic theory beyond the norm. Good useful post.

        Reply
  3. Blazer

     /  7th September 2016

    nothing like a ‘safe’ pair of hands belonging to sound’ economic managers to propel us to a ‘blighter …future’ eh wat!

    Reply
  4. Good news for rural NZ and good news for all the state beneficiaries out there living in the Far North and other places where employment is hard to find, if you actually try that is or not incapacitated by some hard to define illness…

    More money spent in rural towns and more tax in the MoF’s hands to maintain sickness benefits, unemployment benefits etc.

    Would have thought people would be happy about that…

    Reply
    • Gezza

       /  7th September 2016

      I’d be surprised if this little upward growth spurt would create much of a spend up or generate more jobs in rural NZ Dave. I expect farmers will want to run their operations as lean as possible & not get carried away after what they’ve been through with milk prices in the last couple of years.

      Reply
      • patupaiarehe

         /  7th September 2016

        All it will mean is that a few more of them might ‘break even’ this season. While the higher prices are welcome news, I can’t imagine any farmer will be spending any more than they have to. The wise ones will be putting any surplus aside to pay for feed, during the impending hot summer…

        Reply

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