Source: Radio New Zealand
123RF
Dairy prices have fallen again in the fortnightly global auction overnight.
The average price at the Global Dairy Trade auction fell 3 percent to US$3678 a tonne, the seventh consecutive fall.
It follows the 2.4 percent drop in the previous auction.
The GDT (Global Dairy Trade) Price Index was at its lowest level since August 2024.
The price of wholemilk powder, which strongly influences payouts for local farmers, fell 1.9 percent to US$3452 (NZ$6099) a tonne.
Butter prices fell more than 7.6 percent, while cheddar prices fell 2.7 percent, and skim milk powder fell 0.6 percent.
NZX head of dairy insights Cristina Alvarado said the auction reflected the ongoing imbalance between supply and demand globally.
“Milk availability is expected to remain solid in the near term, adding further pressure to prices if demand does not strengthen,” she said.
“Seasonally, buying interest often softens as markets approach the end of the calendar year and move into the Christmas, New Year, Chinese New Year and Ramadan periods, with many buyers already having secured forward contracts.”
Last week the NZX lowered its 2025-26 season forecast from $9.80 to $9.68 a kilogram of milk solids.
– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
