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 Index Lifts
The GDT Index rose 1.2% at event #413. SMP led the field, consistent with global trends and bolstered by high relative demand as the NZ C2 SMP premium compared to WMP further increased. Butterfat prices remained under pressure from rising Oceania supplies heading into...
Australian Exports Remain Weak
MSE exports fell 2.2% YOY in August and were down 3.8% season-to-date. Cheese exports were patchy in recent months but rose 5.9% YOY in August and were marginally higher in the first two months of the season (+0.9%). SMP exports continued to decline, down 10% YOY in...
US Cheese Stocks are Building
Total cheese stocks finished August at 654,414t, up 2,015t from the prior month and +14,691t from the same month last year. While this report on the surface is bearish, it may have a limited market impact as cheese prices are already quite low. August butter stocks...
Fonterra’s August Milk Output Lifts
Milk collections across New Zealand rose 2.9% year-over-year in August to 102.8m – a new August record for Fonterra. Seasonal output is tracking 4.1% ahead of the prior-season comparable. Strong early season production in the South Island due to favourable weather...
US August Milk Output Lifts
August milk production increased 1.7% year-over-year, coming in just slightly below pre-report expectations. California output declined 0.7%, perhaps a bit weaker than expected. Milk flows increased in all other key regions, including Wisconsin (+1.5% YOY), Texas...
NZ Milk Production Growth Continues
DCANZ data shows August 2026 milk solids production rose 3.3% YOY. On a volume basis, milk output rose 2.2% YOY. The new season is off to a great start following record production in 2025-26. Milk volumes are seasonally increasing, with growth reflecting favourable...
GDT Index Declines on Lower Fats Prices
The GDT Index fell 1.1% in Event #412. Despite mixed results, the auction reinforced the resilience of protein while fats recorded sharp declines, reflecting seasonally building Oceania supplies. North Asia demand was weak, while SEOCN buyers increased their market...
EU July Cheese Exports Lift
July exports rose 11.2% YOY in milk solids equivalent (MSE) terms, the eleventh consecutive monthly increase. MSE exports increased 13.9% in the last quarter, led by SMP, butter and cheese. SMP exports were also strong – at a six-year...
US Cheese Output Rises in July
Total cheese production increased 2.1% YOY in July, led by Italian-type cheeses, particularly Mozzarella (+2.9% YOY). American cheese production fell 1.1% YOY, with cheddar down 1.7% YOY. Butter production rose 5.5% YOY with a nearly equal expansion over the last...
China’s Milk Supply Continues to Slow
Chinese milk production declined 2.9% YOY in July, according to the latest China Dairy Monthly Report. This was the seventh consecutive monthly decrease, with milk production estimated at 33.94bn kg over the last year. Liquid milk consumption was +6.8% YOY for the...