Global Dairy Prices Decline in First Auction of 2025

Highlights:

• The average price at the first Global Dairy Trade (GDT) auction of 2025 fell by 1.4% to US$4029 (NZ$7145) per metric tonne (MT).
• Whole Milk Powder (WMP) prices, which make up half of the auction volume, saw a decline, reflecting reduced demand from key regions.
• The drop in prices follows two consecutive auctions where global dairy prices have weakened, indicating cautious market sentiment.

The first Global Dairy Trade (GDT) auction of 2025 saw a decline in average prices, with the overall price dropping by 1.4% to US$4029 (NZ$7145) per metric tonne (MT). At the time of writing, this marks the second consecutive auction where prices have retreated, following an increase driven by Chinese stockpiling in the lead-up to the holiday season.

Whole Milk Powder (WMP), which represents half of the auction volume and has the most significant impact on the farmgate milk price in New Zealand, saw a decrease in its price during the latest auction. The decline reflects reduced demand from key importing regions and the ongoing adjustment in global supply chains.

Industry analysts note that, despite recent volatility, global dairy markets are experiencing a correction after significant gains towards the end of last year. The weakened auction results highlight growing caution in international markets, especially as production in key regions continues to rebound.

New Zealand’s dairy farmers, in particular, will be monitoring these trends closely, as global prices directly influence the local farmgate milk price. The overall sentiment in the market suggests a cautious outlook heading into the first half of the year.

At the time of writing, dairy market participants are keeping a close eye on upcoming auctions and global trade developments, which could further impact price movements in the near term.

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