Global Dairy Trade Auction Sees 1.4% Decline in Price Index

In comparison to the previous auction, where the index fell by 1.6%, this month's auction witnessed a total trade volume of 40,621 tons, representing a 3.3% drop. These auctions are pivotal for the dairy industry, occurring twice monthly, with the subsequent auction scheduled for November 4.

New Zealand, whose dairy sector contributes over 7% to its gross domestic product, is significantly impacted by these auction results. The New Zealand milk co-operative, owned by approximately 10,500 farmers, is responsible for controlling nearly one-third of the world's dairy trade.

GDT Events is a subsidiary of Fonterra Co-operative Group Ltd, yet operates independently from this New Zealand dairy giant. The auction's trading manager is US-listed CRA International Inc, which oversees the bi-monthly activities.