Global Dairy Trade prices tumble for eighth straight auction, butter down 12.4%

The average price at the global auction fell 4.3% following 3% drop two weeks ago. Photo / Mark Mitchell

Prices fell again in the latest Global Dairy Trade auction, held overnight, with the GDT Price Index dropping 4.3% across the board, as supply continues to outweigh demand.

This is the eighth consecutive decline for the auction, following a 3% decrease two weeks ago.

There is one more auction left in the calendar year.

Whole milk powder - which has the biggest impact on Fonterra’s farmgate milk price - dipped 2.4%, to an average of US$3364/MT.

Skim milk powder - Fonterra’s second-biggest reference product – also fell, dropping 1.6%, to an average of US$2498/MT.

Mozzarella slipped 1.0% to an average of US$3182/MT.

Anhydrous milk fat tanked 9.8% to an average of US$5902/MT.

However, butter suffered the largest decrease, sinking a whopping 12.4% to an average of US$5169/MT.

On the positive side, butter milk powder was up 1.8% to an average of US$2903/MT, and lactose rose 4.2% to an average of US$1250/MT.

Cheddar recorded the largest increase, up 7.2%, to an average of US$4639/MT.

A total of 34,282 MT of product was purchased by 117 successful bidders.

On November 25, Fonterra narrowed its 2025/26 farmgate milk price forecast to a range of $9.00 – $10.00 per kgMS, with a midpoint of $9.50 per kgMS.

The co-op’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 per kgMS, on August 21.

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