Global Dairy Trade Index Rises 0.7% as Cheese and Milk Powder Prices Strengthen

August 2026 – The Global Dairy Trade (GDT) Index recorded its second consecutive increase, rising 0.7% at the latest auction held on August 4, reflecting improving sentiment in international dairy markets despite mixed commodity performance.

A total of 40,504 metric tonnes of dairy products were traded during the auction, with the average price reaching €3,275 per metric tonne.

GDT Extends Recovery

The latest auction marks the second straight increase in the GDT price index after three consecutive declines, suggesting renewed stability in global dairy commodity markets.

Strong demand for key products such as skim milk powder, cheddar, and mozzarella helped offset weaker performances in butter and butter milk powder.

Whole and Skim Milk Powder Post Gains

Whole milk powder (WMP), which accounts for approximately half of the total product volume traded on the GDT platform, recorded a 0.2% increase, with the average price reaching €3,019 per tonne.

Skim milk powder (SMP) performed even better, rising 1.2% to €2,827 per tonne, indicating sustained demand from international buyers.

The continued strength in milk powder prices remains a positive indicator for global dairy exporters.

Cheese Prices Continue to Improve

Cheese recorded some of the strongest gains during the auction.

• Cheddar increased 3.8% to €3,227 per tonne.
• Mozzarella rose 1.0% to €3,461 per tonne.

The price increases reflect healthy global demand for cheese products across key export markets.

Butter Prices Decline

Not all dairy commodities shared in the positive momentum.

Butter prices fell 2.3% to €4,530 per tonne, while butter milk powder declined 2.8% to €3,438 per tonne.

Anhydrous milk fat (AMF) also recorded a modest 0.8% decrease, averaging €5,520 per tonne.

Lactose Records Strongest Increase

Among all commodities traded, lactose posted the largest percentage gain, increasing 4.1% to €1,543 per tonne.

The improvement highlights continued demand for specialty dairy ingredients used across food processing and nutrition sectors.

Market Outlook

The latest GDT results suggest improving confidence in international dairy markets, supported by firmer prices for milk powders and cheese.

While butter markets remain under pressure, consecutive gains in the overall GDT Index indicate a gradual recovery in global dairy commodity pricing after a period of softer market conditions.