GDT auction snaps nine declines as tighter supply and Middle East demand lift prices across key dairy commodities.
Global dairy markets started 2026 on a stronger footing, with prices rising at the first Global Dairy Trade (GDT) auction of the year and ending a streak of nine consecutive declines. The GDT Price Index increased 6.3% to an average of US$3,533 per metric tonne, marking a notable shift in market sentiment despite lighter trading volumes.
According to NZX head of dairy insights Cristina Alvarado, total volumes offered fell from the previous auction as New Zealand milk production moved beyond its seasonal peak. The combination of reduced supply availability and improved regional buyer participation supported higher prices across all dairy commodities on offer.
Demand proved stronger than expected, particularly from the Middle East, which emerged as a key driver of the rebound. Whole Milk Powder (WMP), the most influential product for farmgate milk prices and accounting for around half of auction volumes, rose 7.2% to US$3,407/MT, with the Middle East ranking as the second-largest buyer.
Other products also posted gains. Skim Milk Powder increased 5.4% to US$2,564/MT, while Anhydrous Milk Fat climbed 7.4% to US$6,011/MT. Butter rose 3.8% to US$5,206/MT, Butter Milk Powder gained 5.1% to US$3,027/MT, and Cheddar edged up 0.6% to US$4,665/MT. Mozzarella prices were up 0.7% to US$3,418/MT, with total auction sales reaching 29,282 metric tonnes.
The rebound follows a period of sustained price pressure driven by global milk oversupply. Fonterra recently lowered its milk price forecast to a midpoint of NZ$9/kgMS after the prolonged GDT decline. Rising production in the European Union, the United States and New Zealand contributed to weaker prices in late 2025, but with New Zealand production past peak, tighter supply dynamics may now offer some near-term support to global dairy markets.
Source: BusinessDesk — https://businessdesk.co.nz/article/primary-sector/dairy-prices-kick-off-2026-in-better-spirits-snapping-nine-consecutive-falls
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