Global Dairy Trade: Prices rise 0.6% at latest auction as NZ season winds down

The 2025/26 New Zealand dairy season is drawing to a close.

There was a modest rise in prices at the latest Global Dairy Trade auction held overnight, with the overall index lifting 0.6%.

This builds on a 1.6% increase at the previous auction two weeks ago and comes as the 2025/26 New Zealand dairy season draws to a close.

Whole milk powder - which has the biggest impact on Fonterra’s farmgate milk price - was up 1.2% to an average of US$3772/MT ($6463).

Skim milk powder - Fonterra’s second-biggest reference product – rose 0.2%, to an average of US$3552/MT.

Lactose lifted 0.5% to an average of US$1529/MT, while butter gained 2.5% to an average of US$5674/MT.

Mozzarella recorded the largest increase, up 2.9% to an average of US$4127/MT.

On the downside, anhydrous milk fat dipped 1.6% to an average of US$6344/MT, and cheddar fell 1.3% to an average of US$4560/MT.

Butter milk powder was not available at this event.

A total of 12,972 MT of product was purchased by 87 successful bidders, compared to 13,743 MT and 92 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 expanded the forecast range to $9.40–$10.

This followed 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, in December.

Fonterra’s opening forecast on May 29, 2025, 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, 2025.

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