An increase in dairy product prices was recorded at the Global Dairy Trade auction.

The previous auction demonstrated stability with a minimal index change of 0.1%. New Zealand Exchange analyst Rosalind Crickett characterizes the current price growth as a positive result for the majority of dairy raw material categories. The main influence on market sentiment is exerted by concerns regarding future milk production volumes. Despite high output figures in most regions since the beginning of the year, adverse weather conditions in the Northern Hemisphere and the impending El Niño phenomenon in the Southern Hemisphere may change the supply situation.

Among commodity items, skim milk powder became the growth leader, gaining 7.6% in price and approaching a 12-month high. Analysts attribute this to reports of drought in the USA and Europe, which caused farmers to start using winter feed stocks despite current growth in production volumes in these regions. An increase in the price of mozzarella by 6.1%, lactose by 3.2%, and cheddar by 0.6% was also noted. At the same time, a decrease in prices for anhydrous milk fat (by 6%), butter (by 2%), and buttermilk powder (by 3.5%) was recorded, which is explained by significant global supply of milk fats. Growth in butter production was previously recorded in the USA and Europe.

The total volume of products sold amounted to 41,054 metric tons, with the goods distributed among 130 buyers. For comparison, 40,504 metric tons of products were sold to 132 buyers at the previous auction. Experts also note that current demand is fueled by the activity of buyers seeking to place orders ahead of the holiday season. As for New Zealand, the expected milk production data will likely confirm an annual increase, as local pasture conditions remain favorable and stocks of supplementary feed are sufficient.