All was still relatively quiet in the dairy industry at the end of 2019 and this period of stability was the longest we have enjoyed in some time. However there is a slight whiff of suspense in the air for at the start of 2020 as the recent Fonterra GDT auction on January 8th saw prices jump up by 2.8%. This isn’t a massive increase but it is the first sign of the market changing and there are reports of stock supplies tightening up across the global market including Europe.
We also have to factor in the devastating impact of the wildfire outbreak to the Australian dairy industry. The fires affected the key dairy regions of Australia and thousands of hectares of land have been destroyed. This could lead to an impact on the Oceania supply and this will be accounted for in future Fonterra GDT auctions in New Zealand.