Global Market Updates

Milk from Australian dairy farms are made into products that are sold locally and in countries around the world. Understanding what is happening in all these markets will provide an insight to important trends that strongly influence Southern Region farmgate milk prices. Keep up to date with the latest global dairy market developments

GDT edges higher

GDT edges higher

GDT event #350 recorded a 0.5% increase in the overall price index on the lowest volume offered since June last year. WMP prices were expected to weaken with the slippage in futures prices in the past 2 weeks, and they obliged, down US$74/t to US$3,388/t. This was...

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Fonterra combines trans-Tasman units

Fonterra combines trans-Tasman units

Fonterra is merging its Australian business and Fonterra Brands New Zealand (FBNZ) into Fonterra Oceania from 1 May 2024. FBNZ includes consumer brands and foodservice businesses in New Zealand, including brands Anchor, Mainland and Kāpiti. Announcing the merger in an...

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GDT edges higher

Prices fall on Pulse

This week prices fell for both WMP and SMP compared to the recent GDT event #349, but remains higher for both regular WMP and medium heat SMP C2 compared to the last Pulse event.  While medium heat SMP fell US$5/t to US$2,770/t, it remains US$120/t ahead of the...

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Fonterra payout increased

Fonterra payout increased

Fonterra New Zealand has lifted its forecast farmgate milk price range by NZ30c to NZ$7.30kgMS—NZ$8.30kgMS, bringing  the midpoint to NZ$7.80kgMS following five strong GDT events. Fonterra’s forecast earning guidance for FY24 of NZ50c—NZ65c remains unchanged. CEO...

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GDT edges higher

Prices rise for the 5th consecutive GDT

 The GDT price index rose again this week, recording the biggest improvement in this 5-event rally of 4.2%. SMP posted it’s best price gain in four month, with prices rising 4.6% to average US$2,758/t. With EU product facing Red Sea issues, and limited availability,...

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US cheese output marginally higher in December

US cheese output marginally higher in December

US cheese production rose 0.9% YOY in December according to the USDA, compared to an estimated 0.4% decline in the availability of “manufacturing milk.” American cheese output rose 0.5% YOY for the month (with a 2% decline for cheddar) while “other cheese” (including...

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US cheese output marginally higher in December

US milk production down in December

US milk production fell 0.3% YOY in December according to the USDA, mostly reflecting a continued decline in the dairy herd. December average yield per cow was up 0.1% YOY while cow numbers were down 0.4%. At 9,357m, December cow numbers were down 1,000 head on the...

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GDT edges higher

Pulse up slightly

This week’s Pulse event delivered a slight rise in prices with regular grade WMP settling at US$3,270/t, up US$20/t from the C2 price at last week’s GDT. Futures markets were more optimistic, the nearest SGX-NZX WMP futures contract (February 2024) settled at...

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GDT edges higher

WMP down, SMP up on Pulse

WMP eased slightly at  this week’s Pulse auction to average US$3,263/t. Regular grade WMP was down US$20/t at the Pulse auction compared to last week’s GDT event to settle at US$3,250/t, US$40/t higher than the prior Pulse auction.  The nearest SGX-NZX WMP futures...

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US cheese output marginally higher in December

NZ December milk lifts

December milk output rose 2.6% YOY on a solids basis, marking the fourth consecutive monthly year-on-year increase in milk production, according to the latest data from DCANZ. December output lifted 0.9% YOY on a volume basis. The lift in December reflected improved...

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