The average price at the Global Dairy Trade (GDT) auction fell by 2.4% to US$3768 a tonne in the latest event held overnight, marking the sixth consecutive decrease in dairy prices.
It comes after a 1.4% decline at the previous auction.
The GDT Price Index reached its lowest point since September 2024.
The price of whole milk powder, which greatly influences payouts for local farmers, decreased by 2.7% to $3,503 (NZ$6,669) per tonne.
Butter prices dropped by over 4%, and cheddar prices declined by 6.6%.
Skim milk powder remained unchanged.
NZX’s head of dairy insights, Cristina Alvarado, said the auction results generally met expectations.
“The result reflects a market weighed down by abundant milk supplies from New Zealand, Europe, the United States and Argentina, while demand has softened following heavy buying earlier in the season.”
“With product deliveries now well aligned to the Christmas, New Year, Chinese New Year and Ramadan periods, buyers appear content with existing coverage, leading to reduced participation and lower clearing prices.”
Alvarado noted that demand from North Asia, particularly China, was the leading force in the auction.
She also mentioned that the global butter market was experiencing an oversupply, with Europe and the US showing strong production levels and exporting aggressively.