GDT: Dairy prices down 2.4% as cheddar plunges 6.6%

This is the sixth consecutive decline for the GDT auction, following a 1.4% dip two weeks ago.

Prices fell in the latest Global Dairy Trade auction, held overnight, with a 2.4% drop across the board.

This is the sixth consecutive decline for the GDT auction, and follows a 1.4% dip two weeks ago.

Whole milk powder - which has the biggest impact on Fonterra’s farmgate milk price - was down 2.7%, to an average of US$3503/MT.

This follows a 2.4% fall from the previous auction.

There was no change for skim milk powder - Fonterra’s second-biggest reference product – recording an average of US$2559/MT.

This dropped 1.6% at the previous event.

Anhydrous milk fat dipped 1.9% to an average of US$6887/MT, and butter fell 4.3% to an average of US$6371/MT.

Cheddar recorded the largest decrease, plunging 6.6% to an average of US$4449/MT.

On the positive side, butter milk powder rose 1.0% to an average of US$2808, and mozzarella was up 1.6% to an average of US$3306/MT.

Butter milk powder was not available at the last event, where mozzarella fell 5.3%.

Lactose was not offered at this event.

A total of 39,508 MT of product was purchased by 112 successful bidders, compared to 40,621 MT and 117 winning bidders last time.

On September 25, Fonterra confirmed its final Farmgate Milk Price for the 2024/25 season at $10.16 per kgMS.

It also narrowed its 2025/26 forecast Farmgate Milk Price to between NZ$9.00-$11.00 per kgMS, with a midpoint of $10.00 per kgMS.