Global Dairy Prices Surge: WMP Hits Highest Since April 2022
In the latest Global Dairy Trade (GDT) auction, global dairy prices experienced a significant upswing, with the overall price index rising by 4.6% to an average of US$4,516 per metric tonne. This marks the most substantial increase in recent months, driven by robust demand and constrained supply.
Whole Milk Powder (WMP), a key export product for New Zealand, saw a notable price jump of 6.2%, reaching US$4,374 per metric tonne—the highest level since April 2022. This surge is particularly impactful for New Zealand's dairy sector, as WMP prices heavily influence Fonterra's farmgate milk price, directly affecting farmer incomes.
Other dairy commodities also recorded price increases:
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Skim Milk Powder (SMP) rose by 0.5% to US$2,828 per metric tonne.
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Butter increased by 3.8% to US$7,992 per metric tonne.
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Buttermilk Powder climbed 6.2% to US$3,060 per metric tonne.
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Cheddar cheese experienced a significant rise of 12.0%, reaching US$5,519 per metric tonne.
Analysts attribute these gains to strong demand from Southeast Asia and reduced milk supply from Europe, which is impacting production levels. The ongoing trade tensions between the US and Asian economies, coupled with product supply constraints, suggest that prices may remain firm in the near term.
Industry Insight:
The notable increase in global dairy prices, especially in Whole Milk Powder, signals a favorable market for dairy exporters. Stakeholders should monitor these trends closely, as sustained high prices could influence export strategies and domestic supply dynamics.
Source : Dairynews7x7 May 8th 2025 NZ herald