The Rise in Whole Milk Powder Prices Amid Environmental Initiatives

The global dairy market is witnessing a notable shift as the price of whole milk powder has increased by $349 per ton over the year. This development was announced by Fonterra, a leading dairy cooperative, which is taking steps to ensure producers are rewarded for maintaining high-quality milk output while reducing emissions.

In its recent auction, Fonterra observed a decline across most dairy products, with butter being the sole exception. The average price was recorded at $4,370 per ton. Notably, the price of whole milk powder, which is Uruguay's principal export product, climbed from $3,804 in January to $4,153 in the current period, marking an increment of $349.

Amidst these market changes, Fonterra is also making strides in sustainability. The cooperative is actively pursuing strategies to financially reward producers adhering to emission reduction criteria. Fonterra’s CEO, Miles Hurrell, emphasized the importance of enhancing value for those striving to produce sustainable, high-quality milk. This initiative is part of a broader commitment to reducing on-farm emissions and ensuring maximum returns for shareholder farmers.

Despite recent price drops, all dairy products remain above January's values, indicating a positive outlook for the first two months of 2025. This trend is particularly significant given the ongoing environmental efforts aimed at creating a sustainable dairy sector.