Global Dairy Trade Sees Broad Rebound with 2.8% Index Rise

Notably, cheddar and whole milk powder led the charge, registering increases of 4.1% and 3.4% respectively.

Other dairy commodities also saw price rises, including anhydrous milk fat, butter, and skim milk powder, while butter milk powder and lactose were the only exceptions, experiencing declines.

The 2.8% surge in the GDT index marks a substantial turnaround for the dairy commodities market, which has now risen by 27.5% since August last year, despite the recent setbacks totaling 5%.

Market analysts observe a resurgence in demand from Chinese and Middle Eastern buyers, signaling renewed activity in the market.

Lewis Hoggard, an analyst at NZX, notes that whole milk powder (WMP) has stabilized following two lackluster results in March, suggesting a near-term price floor.

However, concerns linger over demand for skim milk powder (SMP) amidst worries about bird flu in U.S. dairy herds, despite prices also finding stability.

Kelly Eckhold, Chief Economist at Westpac, highlights that European buyers have accounted for their largest share of sales since 2021, indicating potential softness in domestic milk production.

The rebound in WMP prices has mitigated some of the downside risks to Westpac's milk price forecast of $7.90.

Overall, the recent uptick in GDT prices reflects a positive sentiment in the dairy market, with signs of stabilization and renewed demand from key global regions.