GDT: Dairy prices up again with 1.9% increase, whole milk powder up 3.2%

Most products on offer were on the up in the latest Global Dairy Trade Auction. Photo / Duncan Brown

Farmers woke up to good news this morning as prices climbed again in the latest Global Dairy Trade auction, held overnight, with a 1.9% increase across the board.

This follows a 4.8% jump from the previous event two weeks ago.

Whole milk powder — which has the biggest impact on Fonterra’s farmgate milk price — recorded the largest increase with another solid lift, rising 3.2% to an average of US$3826/MT.

This is further good news for dairy farmers, as it builds on the 4.4% jump for whole milk powder from the last auction.

Skim milk powder — Fonterra’s second-biggest reference product — rose a modest 0.9%, to an average of US$2882/MT.

This follows a 4.0% increase at the previous event.

Butter was up 0.5% to an average of US$7008/MT, after stealing the show two weeks ago with an 8.3% leap.

Anhydrous milk fat rounded out the positive reference products - up 1.0% to an average of US$7622/MT. It jumped 4.6% previously.

On the negative side, cheddar dropped 3.1% to an average of US$4834/MT, after rising 4.0% last time.

The biggest percentage fall came from mozzarella, which tanked 6.6% to an average of US$4315/MT.

This continues mozzarella’s rollercoaster ride with a 0.9% at the previous auction, an 8.2% crash in the one before that, and a 7.7% nosedive the one before that.

Butter milk powder and lactose were not available at this event.

A total of 36,244 MT of product was purchased by 106 successful bidders, compared to 36,595 MT and 112 winning bidders last time.

On November 11, Fonterra raised and narrowed its farmgate milk price forecast for the 2024/25 season, to between $9.00 and $10.00 per kgMS, with a midpoint of $9.50 per kgMS.

This follows from September 25, when Fonterra’s farmgate milk price forecast was between $8.25/kgMS and $9.75/kgMS, with a midpoint of $9/kgMS.

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