GDT: Dairy prices up 1.4%, whole milk powder jumps 5%

Prices rose across the board for the second Global Dairy Trade Auction of the calendar year.

Prices are up in the latest Global Dairy Trade auction, held overnight, with a 1.4% increase across the board.

It is the second auction of the calendar year and follows a 1.4% fall from the previous event two weeks ago.

Good news for farmers as whole milk powder — which has the biggest impact on Fonterra’s farmgate milk price — jumped an impressive 5.0%, to an average of US$3988/MT, after a 2.1% drop at the previous event.

Skim milk powder — Fonterra’s second-biggest reference product — rose 2.0%, to an average of US$2729/MT, more welcome news after a 2.2% dip last time.

Cheddar lifted 2.8%, to an average of US$4846/MT, with butter not far behind on a 2.2% boost to an average of US$6984/MT.

On the negative side, anhydrous milk fat recorded the biggest loss, plunging 7.8% to an average of US$6616/MT — this follows a 1.6% drop from two weeks ago.

Lactose dipped 0.8% to an average of US$893/MT and mozzarella was down 0.3% to an average of US$4161/MT.

Butter milk powder was not available at this event.

A total of 27,785/MT of product was purchased by 129 successful bidders, compared to just over 30,150/MT last time.

On December 5, Fonterra raised its farmgate milk price forecast for the 2024/25 season, to between $9.50 and $10.50 per kgMS, with a midpoint of $10.00 per kgMS.

This follows an earlier increase on November 11, when Fonterra’s farmgate milk price forecast lifted to a range of $9.00 and $10.00 per kgMS, with a midpoint of $9.50 per kgMS.

The final farmgate milk price for the 2023-2024 season was $7.83 per kgMS milk solids.