Over the past two years leading up to February 2025, the Global Dairy Trade (GDT) auctions have exhibited notable fluctuations in dairy
product prices and trading volumes. The GDT Price Index, a key indicator of international dairy price trends, has experienced both upward and downward movements during this period.In the latter half of 2024, the GDT Price Index demonstrated a general upward trajectory, with eight increases and four decreases over 12 trading events. For instance, in the auction held on December 20, 2024, the index declined by 2.8%, marking the first decrease since October of that year. This decline was attributed to lower prices for products such as cheddar, mozzarella, skim milk powder, whole milk powder, butter, and anhydrous milkfat, while lactose prices saw a slight increase.Transitioning into early 2025, the GDT Price Index continued to exhibit variability. On February 4, 2025, the index recorded a 3.7% increase, reaching its highest level since July 2022. This rise was driven by significant gains in products like lactose (up 17.7%), skim milk powder (up 4.7%), and whole milk powder (up 4.1%). Conversely, slight decreases were observed in butter milk powder and mozzarella prices.Throughout this two-year period, external factors such as global milk production levels, seasonal demand variations, and international trade dynamics have significantly influenced GDT auction outcomes. For example, in March 2023, both dairy prices and trading volumes declined, with a 0.7% drop in the GDT Price Index and a 12.9% decrease in the total volume of dairy products sold compared to the previous auction.
