According to Cristina Alvarado, head of dairy at NZX, the surge in purchasing power was predominantly from Southeast Asia/Oceania and North Asia. Southeast Asia/Oceania dramatically increased its share of GDT purchases by 25% to 34%, while North Asia accounted for an impressive 35% of total purchases. Specifically, North Asia was the leading buyer for whole milk powder and butter, whereas Southeast Asia/Oceania dominated purchases of skim milk powder, anhydrous milk fat, and cheddar. This regional demand highlights evolving global dairy trade dynamics.

Despite the overall positive trend, cheddar cheese proved to be an underperformer in this auction, experiencing a 5.6% drop across all contracts. This decline was anticipated by market analysts, primarily due to the robust supply emanating from the United States. Other key dairy products saw mixed results: anhydrous milk fat recorded a modest 0.8% increase, butter prices remained stable, while lactose and mozzarella experienced slight declines, reflecting nuanced movements within the broader dairy market.

Alvarado also pointed to various supply-side influences that are introducing uncertainty into future trade dynamics. Factors such as dry weather conditions across Europe and the renewed threat of a 30% tariff from the United States on the European Union’s dairy exports are contributing to market volatility. These external pressures create a complex environment for dairy producers and commodity traders trying to forecast future price movements.