Global Market Updates
Milk from Australian dairy farms are made into products that are sold locally and in countries around the world. Understanding what is happening in all these markets will provide an insight to important trends that strongly influence Southern Region farmgate milk prices. Keep up to date with the latest global dairy market developments
Powders Decline at Pulse Event
Powders eased further at this week’s Pulse event with another correction for SMP and WMP. The NZ regular WMP C2 price settled at US$3,485/t, -0.4% lower than last week’s Pulse event. Instant WMP was flat, settling at US$3,595/t. SMP prices declined. NZ Medium Heat C2...
Fonterra’s 2025-26 Record Milk Output
In its latest Global Dairy Update, Fonterra reports milk production of 1,570m kgMS in the 2025-26 season, up +4.1% on the season prior. The coop’s milk output rose 5.8% YOY to 81.5m kgMS in May, the biggest May output on record due to favourable pasture conditions. In...
Powder Prices Decline
This week’s Pulse event brought another price correction for SMP, WMP and AMF. GDT unable to publish a settle price for butter as the winning price was assessed as being non-market determined. The NZ regular WMP C2 price settled at US$3,500/t, down 1.4% from GDT #406...
NZ Season Finishes on a High Note
New DCANZ data shows the 2025–26 New Zealand dairy season set an all‑time production record. May production rose 5.0% year-over-year on a solids basis, with the season finishing +4.5% ahead of the prior season. On a tonnage basis, milk output lifted +3.6% YOY for the...
GDT Index Declines
Event #406 delivered another weaker outcome with price declines across all major products as demand, especially from North Asia (China), remains soft. The index decreased 2.8%. Fonterra C2 Regular WMP dipped 4.1% to US$3,550/t — just US$5/t lower than the price...
EU Milk +2.4% YOY in April
We estimate EU April milk production increased 2.4% YOY. This includes YOY growth in France (+1.1%), Germany (+6.0%), the Netherlands (+4.0% YOY), Poland (+3.7%), Denmark (+2.8%), Sweden (+5.0% YOY) and Austria (+7.2% YOY). Milk production increased by 5.09bn kg since...
Powders Dip at Pulse Auction
Price signals at this week’s GDT Pulse event converged, with powders easing lower while fats held steady to firmer. NZ regular WMP C2 settled at US$3,555/t, down 3.9% from GDT #405 and –3.8% lower than the prior Pulse event. NZ instant WMP C2 settled at US$3,650/t,...
Australian Cheese Exports Recover in April
Total April exports declined 7.0% YOY in milk solids equivalent (MSE) terms. Following four consecutive monthly declines, cheese exports rose 2.3% YOY, with stronger shipments to SE Asia and despite weaker sales into Japan. SMP exports declined 17.8% YOY with weaker...
GDT Index Dips
The GDT Index fell 0.6% at event #405. Chinese participation was at a historic low, making room for stronger purchases from SE Asian buyers . Powder prices dropped across the board. Fonterra C2 Regular WMP lost 1.1% to US$3,700/t, while Fonterra MH SMP C2 eased 2.8%...
Fonterra April Milk Output Increases
The New Zealand cooperative reported 7.3% year-over-year in April, with seasonal output +4.0% ahead of the prior season. Production rose across the North Island, with output up 10.7% YOY in April and seasonal output +3.4% ahead of prior season. On the South Island,...