The final Global Dairy Trade (GDT) auction of the year delivered another setback for dairy farmers, confirming that global milk supply remains in surplus. The GDT price index fell 4.4%, marking its ninth consecutive decline and reinforcing the bearish tone in international dairy markets.
Whole milk powder (WMP), a key indicator for farmgate milk prices, dropped 5.7% to US$3,161 per metric tonne, its lowest level since August 2024. Just six months ago, WMP prices were trading above US$4,300/MT, highlighting the speed and scale of the downturn.
According to NZX Head of Dairy Cristina Alvarado, strong milk production in the United States and Europe, alongside steady output from Argentina and rising milk production in China, has kept global supply abundant. This has reduced buyers’ urgency and intensified competition among exporting regions.
Milkfat prices also softened, with AMF down 5.2% and butter easing 2.5%, while Cheddar was unchanged and Mozzarella and Lactose posted modest gains. Increased buying from North Asia offered limited support, but weaker Middle Eastern participation reinforced the overall downward pressure.
With milk production continuing to outpace demand, global dairy prices are likely to remain under strain in the near term.