Dairy auction prices climb as dry spring hits New Zealand supply

At the most recent Global Dairy Trade auction, average dairy prices climbed 2.5 % to US$4,021 a tonne, marking the second consecutive rise after a 1.2 % increase in mid-September. New Zealand Exchange analyst Rosalind Crickett linked the uptick to a record September milk collection and a 1.9 % rise in milk solids, though she warned that the growth curve is flattening because the North Island is seeing a drier-than-normal spring and markets are pricing in potential El Niño effects.

Whole-milk powder prices surged 4.4 % to US$3,760 a tonne, and skim-milk powder hit its highest level in four years, up 3.4 % to US$3,975. Butter prices fell modestly by 0.4 % to US$4,721, while cheddar prices dropped 7.3 % as cheese production and inventories expand. Crickett also cited festive-season restocking and concerns over product access amid drought and geopolitical tensions as contributing factors, with North Asian buyers accounting for just over half of the volume sold.