The Global Dairy Trade (GDT) auction for 2024 has commenced positively, witnessing a 2.3% overall increase in prices. This follows the earlier uptrend at the start of the year with a 1.2% bump on January 3. Various dairy products experienced price movements, with whole milk powder rising by 1.7% to an average of US$3353/MT and skim milk powder, Fonterra's second-largest reference product, registering a 1.2% increase to an average of US$2638/MT. Cheddar saw a 1% gain, reaching an average of US$4217/MT, while lactose witnessed a 1.3% increase to an average of US$760/MT. The standout performer was butter, posting an impressive 5.8% surge to an average of US$5906/MT, followed closely by anhydrous milk fat, which rose by 4.3% to an average of US$5842/MT. In contrast, mozzarella faced a decline of 3.3%, settling at an average of US$3830/MT.
The total volume of products purchased was 24,909MT by 100 successful bidders, slightly lower than the previous event, which had 26,206MT and 115 winning bidders. Fonterra recently revised its forecast farmgate milk price for 2023-24 to a range of $7-$8 per kgMS, with a midpoint of $7.50, marking an increase from the earlier projection of $7.25. This positive trend in dairy product prices is impacting the industry positively, reflecting in the auction results.