Global Dairy Trade Sees 6.7% Increase Driven by Milk Powders

The Global Dairy Trade (GDT) index, a critical benchmark for international dairy prices, has experienced a substantial increase of 6.7% as of February 4, 2026. This rise is primarily driven by the increased demand for whole and skim milk powders.

Whole milk powder, a significant product in the dairy trade, saw a considerable price increase, contributing to the overall rise in the GDT index. Similarly, skim milk powder also experienced a notable price jump, reinforcing the upward trend in dairy product demand.

Fonterra, one of the leading dairy cooperatives in New Zealand, is closely monitoring these developments as they affect farmgate milk prices. The rise in GDT prices is seen as a positive indicator for dairy farmers, suggesting a potential improvement in profitability.

The recent rally in dairy prices is attributed to various factors, including increased global consumption and supply chain adjustments post-pandemic. Market analysts are observing these trends closely, as they may impact future production and export strategies.

New Zealand, a major player in the global dairy market, stands to benefit significantly from these price increases. With dairy being a crucial part of its export economy, the country is likely to see enhanced economic outcomes if the trend continues.