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
EU Milk Down 2% in February
EU milk production declined 2% YOY in February leap year-adjusted or 235m kg according to the European Commission. There were declines in major producers with Germany down 3.3% and France -4% YOY for the month. After several months of strong growth on low...
SMP Falls On Pulse
Regular grade WMP prices, settled at US$3,980/t at this week’s Pulse auction—unchanged from the result achieved at the GDT #377 event and 1% higher than the previous Pulse event. According to NZX, 1,089t of 1,200t regular grade WMP was sold at the event. Instant...
US And China Ramp Up Tariff War
China responded to the “Liberation Day” tariffs announcement swiftly last week, imposing 34% tariffs on all imports from the US from April 10. China also added 11 American companies to its unreliable entity list along with export controls on 16 US companies...
GDT Index Lifts
The overall price index rose 1.1% at GDT event #377. It was a generally positive result for NZ products while EU prices for butter and cheese were weaker. SMP reported a 5.4% increase in the average but that includes a wild result for UHT SMP (where the C2 price...
Liberation Day? US Tariffs
US president announced a baseline 10% tariff on all countries. Steeper “reciprocal” tariffs will be applied to China (34%), the EU (20%), Vietnam (46%) and Taiwan (32%). The Chinese tariff is reportedly on top of the existing 20% tariff. The Administration to claimed...
SMP Pulse Prices Ease
The latest GDT Pulse event was busy with more buyers and winning bidders turning up but prices for SMP fell. Medium heat SMP prices settled at US$2,750/t, down 3.3% from the C2 price achieved at GDT #376 and –1.6% lower than the previous Pulse auction. The nearest...
NZ Milk Output Eases
Milk production declined 2% YOY in February on a milk solids basis, taking season-to-date production 3.2% ahead of the prior year comparable. Adjusted for the 2024 leap year, February production increased 1.5% YOY. On a volume basis, February output fell 2.6% YOY,...
GDT Index Flat
GDT event #376 event delivered a flat result and was mostly negative for NZ product prices while EU product continued to push higher, as butterfat remained tight in that market. NZ SMP followed the form of last week’s Pulse to more than reverse the gains from #375....
Fonterra Lifts H1 Profit
Fonterra raised profits after tax 8% YOY to NZ$729m in the first half of FY2025 as operating profit jumped 16% to NZ$1.107bn. Earnings per share rose 10% to NZ44c per share and an interim dividend of NZ22c per share will also be paid. The farmgate milk price range for...
Pulse Prices Mixed
Regular grade WMP and medium heat SMP prices moved in different directions at this week’s Pulse event. Regular grade WMP prices settled at US$3,975/t—unchanged from the GDT #375 and up 0.4% from the prior Pulse event. The nearest SGX-NZX futures contract settled...