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, Cheese Drive Up GDT Index
GDT event #415 was another positive event for powders and cheese with the index rising 3.0%. Total North Asia purchased volumes were the highest since November 2018, increasing market share as buyers build inventories ahead of the Chinese New Year. Middle East,...
French Milk Falls 2.6%
In the latest available data for week 43 (ending 25 October 2026), French milk output fell 2.6% YOY and 0.5% on the prior week, according to FranceAgriMer. Normandy was flat but Brittany declined 2.8% YOY. German milk supplies declined 0.2% YOY in week 43 according to...
Pulse Powder Prices Continue To Lift
This week’s Pulse event was positive for powders, with NZ origin powders rising.The Fonterra regular WMP C2 price settled at US$3,765/t, up 1.5% on the price achieved at GDT #414 and +2.4% higher than the latest Pulse price. Instant WMP C2 also rose, up 2.0% from the...
US Milk Production Lifts
US milk production rose 2.6% year-over-year in September, supported by a larger dairy herd and higher yields. Cow numbers increased by 169,000 head from a year earlier to 9.743m, while milk output per cow rose 0.9%. All major milk production regions showed growth....
GDT Index Lifts
The GDT Index rose 2.5% at event #414 as milk powders lifted. The NZ SMP C2 premium vs WMP somewhat narrowed as powder prices firmed. Fonterra Regular WMP C2 rose 4.5% to US$3,710/t and medium heat C2 SMP rose 2.6% to US$3,915/t, remaining well below CME NDM....
Euro Milk Collections Slow
In the latest available data for week 40 (ending 4 October 2026), French milk output fell 2.4% YOY and 1.4% on the prior week, according to FranceAgriMer. German milk supplies increased 0.6% YOY in the same week according to ZMB, a much slower pace relative to prior...
GDT Index Lifts
The GDT Index rose 1.2% at event #413. SMP led the field, consistent with global trends and bolstered by high relative demand as the NZ C2 SMP premium compared to WMP further increased. Butterfat prices remained under pressure from rising Oceania supplies heading into...
Australian Exports Remain Weak
MSE exports fell 2.2% YOY in August and were down 3.8% season-to-date. Cheese exports were patchy in recent months but rose 5.9% YOY in August and were marginally higher in the first two months of the season (+0.9%). SMP exports continued to decline, down 10% YOY in...
US Cheese Stocks are Building
Total cheese stocks finished August at 654,414t, up 2,015t from the prior month and +14,691t from the same month last year. While this report on the surface is bearish, it may have a limited market impact as cheese prices are already quite low. August butter stocks...
Fonterra’s August Milk Output Lifts
Milk collections across New Zealand rose 2.9% year-over-year in August to 102.8m – a new August record for Fonterra. Seasonal output is tracking 4.1% ahead of the prior-season comparable. Strong early season production in the South Island due to favourable weather...