Mixed Dairy Prices Pulled the GDT Index Down 1.1%

The latest auction produced sharply divergent results among major dairy products, with the overall GDT price index declining by 1.1%. Cheddar recorded the strongest movement, gaining 16.5%, while mozzarella fell by 6%. Whole milk powder, a major source of volume for New Zealand processors and a reference point for seasonal payout calculations, also retreated.

Prices for milkfat products, including butter, softened at the same time. The auction results showed that purchasing interest differed considerably by product: buyers competed for aged hard-cheese varieties while showing greater caution towards bulk powders and milkfat commitments.

Skim milk powder and other protein-rich dairy products continued to show structural strength. Demand for dairy proteins and whey fractions exceeded demand for full-strength whole milk powder and traditional milkfats. Food manufacturers worldwide and buyers in Asia placed greater emphasis on protein fortification than on inputs with a high fat content.

Demand for non-fat dry solids helped limit the decline in overall dairy trade values, according to the source. The pattern also presented a challenge for processors holding substantial inventories of whole milk powder, because demand for different milk components was not moving uniformly.

The weaker index coincided with the peak of New Zealand’s spring milk flush. Early-season collections were strong on both the North and South Islands, allowing processing plants to run at high throughput and bringing larger product volumes to the GDT platform.

Southeast Asian markets had absorbed earlier offerings strongly during July and August. By late September, however, auction volumes had expanded in line with the seasonal pattern, testing short-term commercial appetite and contributing to downward pressure on prices.