Reuters said that at the first Global Dairy Trade auction of the month, held by GDT Events on Tuesday, both the prices and amounts of international milk went down.
The GDT Price Index went down by 3.9%, and the average price to sell a tonne was $3,537. GDT Events says that the index lost 4.6% at the last sale.
At the most recent auction, a total of 28,867 tonnes of dairy products were sold, which is about 1.8% less than at the last one, the auction platform said on its website.
The auction results could have an effect on the New Zealand dollar because the dairy industry makes up more than 7% of the country’s GDP.
The New Zealand milk co-op is owned by about 10,500 farmers, and it controls almost a third of the dairy trade in the whole world.
Fonterra Co-operative Group Ltd of New Zealand owns GDT Events, but it works independently from the dairy giant. The Global Dairy Trade auction is run by CRA International Inc., which is based in the US. The auction happens twice a month, and the next one is set for November 15.
