GDT rebounds 1.5% after back‑to‑back dairy price declines

Dairy prices are on the up after two consecutive GDT drops. Photo / 123rf

Prices have bounced back in the latest Global Dairy Trade auction, held overnight, with the overall index lifting 1.5%.

This follows two consecutive price drops: 2.7% at the previous auction and 3.4% at the sale before that.

Whole milk powder - which has the biggest impact on Fonterra’s farmgate milk price - recorded a 2.2% lift, to an average of US$3741/MT ($6355).

Skim milk powder - Fonterra’s second-biggest reference product – rose 3%, to an average of US$3547/MT.

Mozzarella gained 4.7%, to an average of US$4010/MT, lactose was up 3.7% to an average of US$1522/MT, and anhydrous milk fat gained 1.1% to an average of US$6461/MT.

Butter milk powder recorded the largest increase, up 9%, to an average of US$3467/MT.

On the negative side, butter dropped 2.6% to an average of US$5525/MT.

Cheddar recorded the largest percentage fall, dropping 3.6% to an average of US$4611/MT.

A total of 13,743 MT of product was purchased by 92 successful bidders, compared to 14,993 MT and 99 winning bidders last time.

On March 23, Fonterra lifted its 2025/26 farmgate milk price forecast midpoint from $9.50 to $9.70 per kgMS, and increased the forecast range to $9.40–$10.

This follows the co‑op lifting its forecast in February to $9.20–$9.80 per kgMS, with a midpoint of $9.50, up from $8.50–$9.50 per kgMS, with a midpoint of $9.00, in December.

Fonterra’s opening forecast on May 29 was $10 per kgMS, with a wide range of $8-$11 per kgMS, but was narrowed to $9-$11 per kgMS, with a midpoint of $10, on August 21.

Fonterra paid $10.16 per kgMS for the 2024/25 season.