Prices of dairy products rose in Fonterra's latest GlobalDairyTrade auction, the first since news emerged last month that small traces of a nitrate inhibitor had been found in some of the company's milk powder.
The GDT-TWI Price Index rose 2.4 per cent compared to the last sale two weeks ago, the fourth straight gain. The average winning price rose to US$3,598 a metric tonne. Whole milk powder, the biggest product by volume, rose 5.4 percent to US$3,468 a tonne.
Fonterra last week posted a statement on the GDT website assuring customers that none of the New Zealand dairy products on offer at this auction had been manufactured during periods when DCD was detected. Ballance Agri-Nutrients and Ravensdown withdrew fertilisers containing DCD voluntarily after the substance was identified.
The total volume of dairy products sold at the latest auction was 38,232 tonnes, down from 40,418 tonnes a fortnight ago.
The price of anhydrous milk fat gained 7.2 per cent to US$3,500 a tonne and butter milk powder rose 3.7 percent to US$3,530 a tonne. Cheddar slipped 0.1 per cent to US$3,525 a tonne.
