The demand for dairy products typically exceeds the volume offered on GlobalDairyTrade (GDT). During the second half of 2012 demand was particularly strong. This coincided with a reduction in milk supply in most global regions excluding New Zealand. New Zealand recorded strong growth in milk supply during the second quarter of 2012 and this is reflected in the volume of product offered on GDT at this time.
In the second quater of 2012 there was a 25% increase in the volume of product offered on GDT compared with the second quarter of 2011. In addition to the stronger milk flows from New Zealand the inclusion of additional sellers on the platform also helped to bolster supply.
Dairy America first offered skim milk powder (SMP) on GDT on October 4, 2011, and then on April 3, 2012 Murray Goulburn started to supply Lactose and Arla Foods commenced selling SMP via GDT. The volume of product offered on GDT during the first half of 2013 has been constrained by the drought in New Zealand. At this week’s GDT auction just 5,000 tons of WMP is on offer. At the mid April auction in 2012 more than 20,000 tons of WMP was traded. 2011, a more average season for New Zealand milk production, saw approximately 7,500 tons of WMP sold at the corresponding auction.
Source: ADPI
