GDT: Dairy prices fall 0.9% in final auction of season

Prices dropped 0.9% at the latest Global Dairy Trade auction overnight.

Prices dipped in the latest Global Dairy Trade auction, held overnight, with a 0.9% decrease across the board.

This follows an impressive 4.6% jump from the previous auction.

This is the final Global Dairy Trade Auction for the season, which officially finishes on May 31.

Most dairy farmers dry off their herds in late autumn (May–June) to give cows a rest period before calving, which typically begins in July and August.

Whole milk powder, which has the biggest impact on Fonterra‘s farmgate milk price, dropped 1.0%, to an average of US$4332/MT.

Skim milk powder - Fonterra’s second-biggest reference product – fell 0.7%, to an average of US$2817/MT.

Butter was down 1.5%, to an average of US$7821/MT, and cheddar dived 9.2% to an average of US$5007/MT.

The biggest percentage fall came from lactose, which plunged 13.2% to an average of US$1398/MT.

On the positive side, anhydrous milk fat was up 0.9% to an average of US$7273/MT, and mozzarella recorded a 0.7% increase to an average of US$4788/MT.

Butter milk powder was not available at this event.

A total of 15,194 MT of product was purchased by 110 successful bidders. Just over 16,700 MT was purchased at the last auction.

On March 20, Fonterra narrowed its farmgate milk price forecast for the 2024/25 season to between $9.70kgMS - $10.30kgMS, which retained a $10.00kgMS midpoint.

This follows an earlier increase on December 5, when Fonterra’s farmgate milk price forecast lifted to a range between $9.50 and $10.50kgMS, with a midpoint of $10.00kgMS.

The final farmgate milk price for the 2023-2024 season was $7.83kgMS milk solids.