Dairy prices have fallen again at the latest Global Dairy Trade auction, marking the seventh consecutive decline.
The average price dropped by 3% to US$3,678 per tonne. It comes after a 2.4% decrease in the previous auction.
The price of whole milk powder, which heavily impacts payments to local farmers, decreased by 1.9% to US$3,452 (NZ$6,099) per tonne. Butter prices dropped sharply by over 7.6%, cheddar declined by 2.7%, and skim milk powder fell by 0.6%.
The GDT Price Index reached its lowest point since August 2024.
The NZX head of dairy insights, Cristina Alvarado, said the auction underlined the persistent global imbalance between supply and demand in the dairy market.
“Milk availability is expected to remain solid in the near term, adding further pressure to prices if demand does not strengthen,” she said.
“Seasonally, buying interest often softens as markets approach the end of the calendar year and move into the Christmas, New Year, Chinese New Year and Ramadan periods, with many buyers already having secured forward contracts.”