Global Dairy Trade prices up 1.5% as 2026 rally continues

The first two Global Dairy Trade auctions of 2026 have shown positive price movements.

Dairy’s positive start to 2026 continues, with prices rising 1.5% across the board in the latest Global Dairy Trade auction.

This follows a strong 6.3% jump in the first auction of the year two weeks ago.

Most product movements were more modest this time compared to the sharp increases seen earlier in January.

Whole milk powder - which has the biggest impact on Fonterra’s farmgate milk price - lifted 1%, to an average of US$3449/MT ($5900/MT), after a hefty 7.2% rise at the previous event.

Skim milk powder - Fonterra’s second-biggest reference product – rose 2.2%, to an average of US$2615/MT ($4480/MT), following an impressive 5.4% increase two weeks ago.

Butter was up 2.1% to an average of US$5314/MT ($9,111/MT) - it gained 3.8% last time.

Anhydrous milk fat rounded out the positive reference products - up 3.0% to an average of US$6191/MT ($10,615/MT) - after leaping 7.4% at the previous event.

Cheddar dipped 1.4%, to an average of US$4594/MT ($7878/MT) - up 0.6% previously - and lactose fell 1.8% to an average of US$1385/MT ($2375/MT).

Lactose was not available at the last auction.

Mozzarella recorded the largest fall, down 2.3% to an average of US$3340/MT ($5728/MT). This follows a 0.7% increase two weeks ago.

Butter milk powder was not available at this event.

A total of 27,821MT of product was purchased by 114 successful bidders, down from 29,282MT at the previous auction, with the number of winning bidders unchanged.

On December 18, Fonterra further narrowed its 2025/26 farmgate milk price forecast to a range of $8.50-$9.50/kgMS, with a midpoint of $9 per kgMS.

This follows Fonterra cutting its 2025/26 farmgate milk price forecast to a range of $9 - $10 per kgMS, with a midpoint of $9.50 per kgMS on November 25.

The co-op’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 per kgMS, on August 21.

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