Global dairy prices rise 5.7 percent amid Middle East tensions

Wellington, New Zealand (ANTARA) - Global dairy prices rose 5.7 percent to US$4,301 per tonne in the latest Global Dairy Trade (GDT) auction held last night, marking the fifth consecutive price increase since January amid tensions in the Middle East. Following a price rise of 3.6 percent in the previous auction, last night’s session showed strong buying interest, even though production in key regions remained elevated.

Meanwhile, offer volumes declined as the end of the milking season approached in New Zealand, according to Cristina Alvarado, head of Dairy Data & Insights at the New Zealand Exchange (NZX). Whole milk powder, the main benchmark for payments to farmers, rose 4.5 percent to US$3,863 per tonne, according to GDT auction data. Also, skim milk powder rose 9.1 percent, butter 6.1 percent, mozzarella cheese 7.9 percent, and cheddar cheese 4.3 percent.

North and South Asia dominated purchases, though Europe, the Middle East, and Africa also increased their participation despite the Middle East conflict disrupting logistics, Alvarado said.

GDT is a leading online platform for transparent dairy product auctions and a global price discovery benchmark, involving buyers and sellers from more than 60 countries and regions. Established in 2008 and headquartered in Auckland, New Zealand, the platform is owned equally by Fonterra, NZX, and the European Energy Exchange.