GDT: Dairy prices drop 2.8% for the final auction of the year

This was the final event of the year and the first auction of 2025 will be on Jan 7. Photo / Mark Mitchell

Prices have slipped in the latest Global Dairy Trade auction, held overnight, with a 2.8% decrease across the board.

This is the first negative result since a 0.3% dip at the October 16 event.

Prices were on the up after this, with an impressive 4.8% jump at the beginning of November, followed by a 1.9% climb at the next event, and a 1.2% lift to start December.

This was the final event of the year. The first auction of 2025 will be on Jan 7.

Whole milk powder — which has the biggest impact on Fonterra’s farmgate milk price — dropped 2.9%, to an average of US$3890/MT.

Skim milk powder — Fonterra’s second-biggest reference product — dipped 2.9% as well, to an average of US$2757/MT.

Cheddar was down 0.2% to an average of US$4682/MT, and butter slipped 0.6% to an average of US$6631/MT.

Anhydrous milk fat has the largest decrease, losing 3.8% to an average of US$7267/MT.

Mozzarella sank 1.8% to an average of US$4033/MT.

Lactose bucked the negative trend with a 0.5% increase to an average of US$915/MT.

Butter milk powder was not available at this auction.

A total of 32,120 MT of product was purchased by 143 successful bidders, compared to 33,630 MT and 125 winning bidders last time.

On December 5, Fonterra raised its farmgate milk price forecast for the 2024/25 season, to between $9.50 and $10.50 per kgMS, with a midpoint of $10.00 per kgMS.

This follows an earlier increase on November 11, when Fonterra’s farmgate milk price forecast lifted to a range of $9.00 and $10.00 per kgMS, with a midpoint of $9.50 per kgMS.

The final farmgate milk price for the 2023-2024 season was $7.83/kgMS milk solids.