GDT Event 411 Shows Asia Sustaining Dairy Demand
GDT Event 411 produced divergent results across dairy categories. The GDT index increased by 0.9% to an average of $3,910 per tonne on an FAS basis. Whole milk powder declined 0.1% to $3,585 per tonne, while skimmed milk powder rose 5.3% to $3,695.
Milk-fat products recorded smaller declines than prices in the dairy derivatives market had indicated before the auction. Anhydrous milk fat fell 1.3% to $5,917 per tonne, and butter decreased 0.8% to $5,028. NZX said that continued global availability of cream remained a source of pressure on those prices.
Cheddar registered the largest fall among the products traded. Its average price dropped 6.6% to $3,503 per tonne, the lowest level recorded for the product on the GDT platform in five years. Alvarado, NZX’s head of dairy insights, attributed the result to increased export availability from several major cheese-producing regions.
Other results included a 4.6% increase for buttermilk powder, to $4,136 per tonne; a 0.3% rise for mozzarella, to $4,244; and a 2% gain for lactose, to $1,910. The figures placed milk powders and several other protein-related products apart from butterfat and cheddar in the auction’s results.
Buyers from North Asia made up the largest purchasing presence at Event 411, with strong participation from South-East Asia and Oceania. Asia led purchases of several principal products, including whole milk powder, anhydrous milk fat, butter and cheddar. Alvarado said the auction showed a growing split between categories: demand for protein continued to support powder prices despite greater availability, while milk fats remained under pressure and cheese faced heavier supply.
Alvarado said the market’s ability to absorb additional powder without significant downward pressure indicated underlying demand for dairy protein. She identified demand for powder as a key measure to monitor as Northern Hemisphere milk production responds to recent heatwaves and droughts, while buyers continue to secure supplies for the coming months.
For Brazil’s dairy producers and processors, the auction provides separate signals for powder and cheese. The firm result for skimmed milk powder, despite increased availability, is a reference for companies exporting or trading milk powder. The cheddar decline to a five-year low is relevant to exporters competing in overseas cheese markets, where greater availability from other producing regions has affected prices.
