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 Declines
GDT event #382 was the third consecutive event with a decline in the overall index, down 1.0%. Fats were mixed and the volatile cheddar trade reversed some of the recent losses. WMP again took the heavier hit of the powders, down 2.8% for CP2 for the 3rd event in...
NZ Milk To Marginally Increase
NZ milk production will increase slightly to 21.7bn kg in 2025 according to a new USDA GAIN report. Short-term factors affecting milk trends are strong farmgate milk prices and low interest rates, but New Zealand’s dairy sector continues to adjust to structural...
Pulse Prices Tumble
This week’s Pulse continued the trend set by GDT #381 WMP and SMP with medium heat SMP and regular WMP prices down. Regular WMP lost US$150/t or 3.7% from last week’s GDT #381, settling at US$4,030/t. The settled price was 3.6% lower than the price achieved at the...
EU Milk Up 1.1% in April
EU milk production increased 1.1% YOY in April 2025 or 144mn kg according to Eurostat and AGEA estimates. The overall YOY increase was despite Germany production falling 1.1%, the lower intake in the Netherlands (-0.1% YOY) and Belgium (-2.6% YOY). Milk collection...
Index Falls On Mixed Results
GDT event #381 yielded a 1.6% decrease in the overall index The auction was similar to the previous auction with negative results across NZ products other than AMF, while EU fat, SMP and cheese prices lifted in line with recent form in that market. WMP took the...
Weekly Milk Intake Declines
Combined weekly German and French milk collections declined 0.2% YOY in week 20 (ending 17 May 2025). The rolling 4-week intake was up 0.1% relative to the prior year. German supplies fell 1.8% YOY in week 21. In week 20, French supplies increased 1.1% YOY, the sixth...
Pulse Prices Slide
Both powders recorded price declines at this week’s GDT Pulse event. Regular grade WMP prices fell 3.8% compared to GDT #380 and were 3.5% lower than the price achieved at the prior Pulse event, settling at US$4,185/t. The nearest SGX-NZX futures contract settled at...
Fonterra NZ Opens at NZ$10kgMS
New Zealand’s largest dairy cooperative is forecasting a milk price of NZ$10kgMS—both for the opening 2025/26 season price and the full 2024/25 season. The 2025/26 forecast milk price is a wide range, NZ$9.00kgMS—NZ$11.00kgMS. Announcing the opening price, CEO Miles...
GDT Price Index Falls 0.9%
The price index fell 0.9% at GDT #380 in what was a mostly negative result for NZ product values. AMF was the only commodity that posted average gains, while EU products echoed firmer fat, SMP and cheese prices in line with recent wider market trends. WMP regular...
Milk Production Up 1.5% In April
Milk production rose 1.5% in April, reflecting a 1% increase in cow numbers and 0.5% increase in average per-cow yield. April cow numbers were up 5,000 head from March, with the USDA revising the prior month’s number up by 16,000. Californian milk production continued...