The Global Dairy Trade (GDT) index, which reflects international dairy market trends, has recorded its second consecutive decline, falling by 1.6% on June 4, 2025. This auction, closely followed by dairy producers and traders worldwide, saw significant price drops in buttermilk powder, cheddar, and whole milk powder, though products like anhydrous milk fat and mozzarella showed moderate gains. New Zealand-based dairy cooperative Fonterra, a major participant in GDT auctions, reported strong Q3 earnings, underlining resilience despite price pressures.
The Global Dairy Trade (GDT) index, a key global benchmark for international dairy prices, has recorded its second straight decline, falling by 1.6% to 1,311. The average price per metric tonne now stands at $4,118, based on the latest auction conducted on June 4, 2025.
Headquartered in Auckland, New Zealand, GDT operates as a digital trading platform where buyers and sellers from across the dairy industry participate in biweekly auctions. These auctions play a significant role in influencing global dairy pricing trends.
In the most recent auction, 166 bidders engaged over a two-hour and 14-minute session, resulting in 16,307 metric tonnes of dairy products sold. Notable declines were seen in the prices of several key dairy products. Buttermilk powder registered the steepest drop of 6.1%, averaging $2,695/mt. Cheddar prices also fell by 4.2% to $4,527/mt, while whole milk powder (WMP) decreased by 3.7% to $3,970/mt. Lactose and skim milk powder also dropped by 2% and 1.1% respectively.
However, not all products saw a downturn. Anhydrous milk fat (AMF) rose by 1.4% to $6,998/mt, and mozzarella climbed by 2.3%, reaching $4,646/mt. Butter prices remained unchanged at $7,405/mt.
Amid these price fluctuations, Fonterra, one of the largest dairy exporters globally and a significant contributor to the GDT auctions, reported a strong Q3 performance. The New Zealand agri-business announced an after-tax profit of NZ$1.158 billion (approx. $748 million)—an 11% increase year-on-year. Fonterra has also raised its earnings guidance for the 2025–26 season to 65–75 cents per share and reaffirmed its farmgate milk price forecast at $10.00 per kg of milk solids.
These contrasting developments highlight ongoing volatility in the global dairy market, driven by changing demand dynamics and supply chain considerations.
