The latest trading activity on the international dairy exchange shows broad-based price increases, with fat-rich products leading the upward trend.

The most recent results from Global Dairy Trade point to a strengthening global dairy market. At the latest auction, the overall price index rose by just over six percent, lifting the average trading price to USD 3,533 per tonne.

The price increase was primarily driven by products with high fat content. Anhydrous milk fat recorded a strong upward movement, trading at just over USD 6,000 per tonne, while butter also saw a clear price increase, ending above USD 5,200 per tonne.

Cheese markets showed a more measured development. Both cheddar and mozzarella posted modest gains, indicating a market characterised by relative balance between supply and demand rather than structural shortages.

Milk powders also contributed to the overall price increase. Skim milk powder and whole milk powder traded at higher levels than at the previous auction, and buttermilk powder also recorded gains. Lactose was traded outside the index calculation.

Overall, the auction paints a picture of an international dairy market in which value creation is increasingly driven by fat and powder fractions. This development may influence dairy processors’ priorities in raw material utilisation, product portfolios and market strategies in the months ahead.

By Maja Løvstrup
Source: Effektivt Landbrug
Illustration: Colourbox