WELLINGTON, April 22 (Xinhua) -- Global dairy prices extended their decline at the latest auction overnight, amid ample supply and geopolitical tensions that are weakening demand and raising costs.
The average price at the fortnightly Global Dairy Trade (GDT) auction fell by 2.7 percent to 4,143 U.S. dollars per ton, following a 3.4-percent drop at the previous event, the first fall this year, according to GDT Events Results released Tuesday.
Global supply remained ample despite New Zealand's seasonal milk production decline, while steady European output further reinforced downward pressure on fat values, New Zealand's Exchange dairy insights head Cristina Alvarado was quoted as saying by Radio New Zealand on Wednesday.
"Ongoing geopolitical tensions linked to the conflict involving Iran are contributing to elevated freight, insurance and input costs," Alvarado said, adding disruptions around the Strait of Hormuz and high oil prices were adding uncertainty, prompting many buyers to delay purchases in hopes of lower costs and clearer logistics.
