Global dairy prices soften for the first time in over two months

Thursday, 22 May 2025 03:10 - - {{hitsCtrl.values.hits}}

The Global Dairy Trade index fell almost a percentage point overnight, the first decline since early March.

The index, charting a trade that happens every two weeks, has risen by 7.3% since March 4, but this week’s auction snapped the ascending streak. There were sharp falls in products like Cheddar cheese, which was down 9.2% to US$5,007 per metric tonne.

Lactose was down 13.2% to $1,398M/T.

Whole milk powder, New Zealand’s key export, dropped 1% overnight to US$4,332/MT.

The last auction was the first since “Liberation Day”, when US President Donald Trump slapped baseline 10% tariffs on all its trade partners and more still on selected countries, a move that caused markets to veer wildly.

There were fears that global dairy might take a hit as well, but prices surged instead. Whole milk powder gained 6.2% at the time, ending on US$4,374/MT.

Despite some fluctuation in the latest figures, farmers are still on course for two consecutive robust payouts. DairyNZ predicts an estimated breakeven milk price of $7.51/kgms this season and $8.57/kgms next season.

BakerAg dairy analyst Chris Lewis told The Post a lift in commodity prices was expected in times of global uncertainty, with whole milk powder faring better than crude oil. Slowing production out of the US and Europe and tariff uncertainty had also played a part.

He and other economists said the diary price spikes would likely recede throughout this year. (Source: https://www.thepost.co.nz/business/360696146/global-dairy-prices-soften-first-time-over-two-months)

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