mar
2026
International dairy markets continued their upward trajectory in mid-February, as the latest auction of the Global Dairy Trade (Event 398), held on February 17, 2026, recorded another solid gain. The GDT Price Index increased by 3.6%, pushing the average winning price to USD 4,028 per metric tonne. A total of 22,240 tonnes of product were sold, reflecting renewed confidence among buyers following a prolonged downturn that characterized much of 2025. Auction activity underscored the strengthening sentiment. Of the 167 registered bidders, 105 successfully secured product during nearly four hours of competitive trading across 23 bidding rounds. The strong participation highlights sustained global interest, particularly in core export commodities such as milk powders and dairy fats.
Broad-Based Gains Across Key Products
Recent auction trends have shown particularly notable increases in SMP and
mozzarella, alongside consistent strength in butter and anhydrous milk fat.
These movements suggest that buyers are prioritizing essential ingredients amid
moderating global supply conditions.
Drivers Behind the Market Rebound
Although detailed product-level data were not fully disclosed in the official
release, broader market reports indicate that the recovery has been widespread.
Butter continues to outperform other categories, maintaining strong price
momentum. Skim Milk Powder (SMP) and Whole Milk Powder (WMP) have also posted
steady gains, supported by firm international demand. Dairy fats and selected
specialty products are benefiting from tighter inventories in several producing
regions.
The latest price increases mark a clear shift from late 2025, when global oversupply and weak participation weighed heavily on auction results. During that period, strong milk output in major exporting regions—including New Zealand, Europe, and the United States—put downward pressure on prices.
