GDT: Dairy prices edge up 0.1%, but whole milk powder drops 4%

This is now the sixth consecutive rise in the GDT since the start of the year. Photo / John Stone

Global dairy prices have edged higher again at the latest Global Dairy Trade auction, held overnight, with the GDT Price Index lifting 0.1%.

This is now the sixth consecutive rise since the start of the year, following a 5.7% jump at the previous auction, and a 3.6% lift at the event before that.

However, whole milk powder – which has the biggest impact on Fonterra’s farmgate milk price – fell 4.0%, to an average of US$3709/MT.

In contrast, skim milk powder – Fonterra’s second-biggest reference product – rose 5.2%, to an average of US$3409/MT, following a sharp 9.1% increase at the previous auction.

Cheddar was up 0.1%, to an average of US$4925/MT, with butter not far behind on a 0.9% boost to an average of US$6868/MT.

Mozzarella gained 0.5% to an average of US$4208/MT.

Anhydrous milk fat recorded the strongest increase, rising 6.4% to an average of US$7602/MT.

On the downside, lactose slipped 0.3% to an average of US$1450/MT.

Butter milk powder was not available at this event.

A total of 19,500 MT of product was purchased by 98 successful bidders, compared to 18,861 MT and 97 winning bidders last time.

On February 20, Fonterra lifted its 2025/26 farmgate milk price forecast midpoint from $9.00 to $9.50 per kgMS, and narrowed its forecast range to $9.20–$9.80 per kgMS.

This follows the co-op narrowing its forecast to $8.50–$9.50 per kgMS, with a midpoint of $9.00 in December, after cutting it from $9.00–$10.00 per kgMS, with a midpoint of $9.50 in November.

Fonterra’s opening forecast on May 29 was $10.00 per kgMS, with a wide range of $8.00 - $11.00 per kgMS, but was narrowed to $9.00 - $11.00 per kgMS, with a midpoint of $10.00, on August 21.

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