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
December Cheese Output Up 6.7%
US cheese production increased 6.7% YOY in December, according to USDA, on an estimated 5.5% rise in manufacturing milk availability. American cheese output rose 6.8% YOY for the month with a 9% increase for cheddar, while “other cheese” varieties (including...
Mixed Prices in Butter, AMF Pulse Debut
This week’s Pulse event, the 100th of its kind, was mixed with increases for WMP and butter prices, while AMF declined and SMP was mixed. Regular NZ WMP rose 0.4% from the latest GDT event to US$3,605/t, while Instant WMP settled at US$3,700/t, also up 0.4% from the...
GDT Prices Jump
A technical glitch delayed the GDT results following event #397. The index rose 6.7%, the third consecutive lift in the index with increases across all commodity prices. NZ Regular WMP C2 prices rose 6.1% to US$3,590/t, with Chinese buyers picking up more volume....
NZ WMP Exports Lift
NZ exports increased 6.3% YOY in December in milk solids equivalent (MSE) terms and were 2.3% higher in 2025. Trade was positive across commodities except dry whey, infant formula and FFMP & Mixtures. China & HK’s WMP demand remained weak, with volumes at a...
Fonterra December Milk Rises
Fonterra’s latest Global Dairy Update forecasts milk collections of 1,545m kgMS in the 2025/26 season with a forecast milk price in the range of NZ$8.50kgMS—NZ$9.50kgMS. Both forecast milk collections and forecast milk price are unchanged from the previous forecast....
EU Growth Slows
In the latest available data for week 2 (ending 10 January 2026), French milk output increased 1.8% YOY, a 20-week low. In the same week, German milk production increased 5.6% YOY, a 15-week low. UK milk supplies rose 3.7% YOY in the first 17 days of January.
Fonterra Sale Expected to Settle in Q1
Fonterra’s sale of Mainland Group is expected to settle in the first three months of 2026, according to a notice of meeting released last week. The note announced a special meeting on 19 February in which a second vote to approve the divestment is held. At the first...
Another Lift in the GDT Index
GDT #396 marked another uptick in the index, which rose 1.5% from the prior auction. Fonterra Regular WMP C2P rose 0.7%, with buyers in the Middle East and Africa picking up more. Even still, relative demand was weak, and volumes sold declined seasonally. North Asia...
Pulse Powder Prices Lifts
Prices for NZ and EU milk powders rose at this week’s Pulse event. NZ regular grade WMP rose 1.0% against GDT #395 and +7.6% on the prior Pulse event, settling at US$3,395/t. Instant WMP settled at US$3,490/t, up 1.0% compared to GDT #395 and 7.4% higher than the...
EU Milk +4.5% YOY in November
We estimate EU milk production increased 4.5% YOY in November, according to Eurostat and AGEA. This includes YOY growth in France (+6.3%), Germany (+7.5%), Poland (+5.3%), Denmark (+0.7%), Austria (+9.8% YOY), Belgium (+9.7% YOY) and Sweden (+6.4%). November...