GDT: Dairy prices fall 2.8% in second dip of the new season

Prices have fallen again at the latest Global Dairy Trade auction overnight, with a 2.8% decline across the board and all but one product posting losses.

This marks the second consecutive dip for the new season, following a 0.6% easing two weeks ago.

Whole milk powder – which has the biggest influence on Fonterra’s farmgate milk price – fell 3.1% to an average of US$3589/MT.

Skim milk powder – Fonterra’s second-biggest reference product – decreased 3.6% to an average of US$3368/MT.

Cheddar slipped 3.4% to an average of US$4471/MT, while butter eased 2.4% to an average of US$5516/MT.

Anhydrous milk fat was down 1.0% to an average of US$6601/MT.

The steepest decline was recorded by mozzarella, which dropped 5.0% to an average of US$3750/MT.

Lactose was the only product to post a gain, rising 4.2% to an average of US$1702/MT.

Butter milk powder was not available at this event.

A total of 12,922 MT of product was sold to 99 successful bidders, compared with 14,364 MT and 97 winning bidders at the previous auction.

On May 28, Fonterra announced its opening 2026/27 farmgate milk price forecast of $9.75 per kgMS, within a range of $8.00-$11.00.

For the 2025/26 season, which ended May 31, the co-op narrowed its forecast range to $9.60-$9.80 per kgMS, from $9.40-$10.00, with the midpoint unchanged at $9.70 – its second-highest on record.

This compares with the record $10.16 per kgMS paid for the 2024/25 season.