GDT: Dairy prices jump 5.5%, whole milk powder leaps 7.2%

Last night's event builds on the previous auction where prices lifted 0.5% across the board. Photo / DairyNZ

Prices have bounced back in the latest Global Dairy Trade auction, held overnight, with an impressive 5.5% increase across the board.

The sixth event of the new dairy season, it is the largest percentage lift since March 2021, and a far cry from the the beginning of July when prices plunged 6.9%.

It builds on the previous auction where prices lifted 0.5% across the board.

Good news for farmers, as whole milk powder — which has the biggest impact on Fonterra’s farmgate milk price — recorded a whopping 7.2% rise, to an average of US$3482/MT.

Skim milk powder — Fonterra’s second-biggest reference product — also enjoyed an impressive boost, up 4%, to an average of US$2636/MT.

Anhydrous milk fat rose 4.8% to an average of US$7244/MT and lactose increased 2.7% to an average of US$945/MT.

Mozzarella jumped 5% to an average of US$4810/MT and butter was up 3.7% to an average of US$6706/MT.

Cheddar bucked the positive trend, dropping 0.2% to an average of US$4274/MT.

Butter milk powder was not available at this event.

A total of 34,916 MT of product was purchased by 112 successful bidders, compared to 35,965 MT and 133 winning bidders last time.

On May 29, Fonterra announced an opening farmgate milk price for the new 2024-2025 season with a range of $7.25 per kgMS - $8.75 per kgMS and a midpoint of $8.

At the same time, Fonterra also narrowed its 2023-2024 season forecast to between $7.70 to $7.90 per kgMS, leaving the midpoint unchanged at $7.80.