In a bullish signal for the global dairy sector, the Global Dairy Trade (GDT) auction on May 6, 2025, posted a 4.6% increase in the overall price index. Key commodities, including cheddar, whole milk powder (WMP), and butter, led the rally—an encouraging sign for India’s dairy exporters eyeing the Middle East and Southeast Asia.
Price Highlights:
| Product | Price (USD/MT) | Change (%) |
|---|---|---|
| Cheddar Cheese | $5,519 | +12.0% |
| Whole Milk Powder | $4,374 | +6.2% |
| Anhydrous Milk Fat | $7,212 | +5.4% |
| Butter | $7,992 | +3.8% |
| Skim Milk Powder | $2,828 | +0.5% |
Cheddar saw the sharpest price spike at 12%, a signal of tightening global supply. For India, which is not yet a major player in cheese exports but has been developing value-added dairy capabilities, this surge could bolster interest in cheddar manufacturing hubs under cooperative or private-label brands.
Export Opportunity for India:
The modest 0.5% uptick in Skim Milk Powder (SMP) prices may appear underwhelming globally, but it comes at a crucial time for India. As of early 2025, India’s SMP inventories remain high, especially in states like Maharashtra and Gujarat. Export parity has been challenging, with Indian SMP struggling to compete with Oceania-origin products. But the recent GDT rally could narrow that gap, particularly if Indian exporters leverage government incentives under schemes like RoDTEP (Remission of Duties and Taxes on Exported Products).
With butter and WMP prices also rising sharply, Indian players could see further consolidation of their offerings, especially in the UAE, Saudi Arabia, and Bangladesh, where Indian dairy enjoys trust and proximity advantages.
Volume Traded:
Over 16,700 metric tons were sold during the auction, dominated by WMP and SMP segments in which India has growing aspirations to compete, especially as domestic consumption stabilises post-festival season.
Market Insight:
Ahead of the auction, Whole Milk Powder futures on the SGX rose by 2.6%, reflecting bullish sentiment. In contrast, Chinese farmgate milk prices dropped over 11% year-on-year, highlighting a divergence between domestic production costs and import demand—a trend that could favour cost-competitive Indian exporters.
Implications for Indian Dairies:
The GDT rally reinforces the need for Indian dairies to:
- Enhance value addition in the cheese and butter categories.
- Focus on consistent product quality and traceability,
- Strengthen B2B export partnerships with Middle Eastern and ASEAN importers.
With the Indian government increasingly aligning trade policy toward agri-export growth, this auction result is a signal to double down on dairy diplomacy and supply chain readiness.
