Global dairy prices have declined for the sixth consecutive auction, with the Global Dairy Trade (GDT) average price falling 2.4% to US$3,768 a tonne. This follows a 1.4% drop in the previous auction and marks the lowest GDT Price Index level since September 2024.
Wholemilk powder, a key product influencing local farmer payouts, fell 2.7% to $3,503 (NZ$6,669) per tonne, marking its fifth consecutive decline. Butter prices fell more than 4%, cheddar dropped 6.6%, while skim milk powder remained largely flat. Analysts noted that buyers are purchasing on a “hand-to-mouth” basis, rather than building inventories.
NZX Head of Dairy Insights Cristina Alvarado said the results were broadly expected, reflecting abundant milk supplies from New Zealand, Europe, the US, and Argentina, coupled with softened demand after heavy buying earlier in the season. Product deliveries are now well aligned with the Christmas, New Year, Chinese New Year, and Ramadan periods, reducing buyer participation and pushing prices lower.
North Asia, particularly China, remains the dominant demand driver, while the global butter market is oversupplied, with US exports up 208% year-on-year and Europe exporting aggressively.
The continued slide highlights persistent volatility in international dairy markets and poses challenges for exporters and producers seeking to maintain profitability amid oversupply and softened global demand.
