Dairy market sees 1.2% price increase and 4.3% jump in skim milk powder
Dairy product prices rose 1.2% while skim milk powder prices surged 4.3% in the latest auction, with slightly fewer bidders and participants than the previous round.
The recent dairy auction recorded sales of 41,692 metric tonnes to 124 winning bidders across 18 rounds, down from 42,444 tonnes and 126 bidders in the prior event. Prices for dairy products climbed 1.2%, and skim milk powder jumped 4.3%. Fonterra adjusted its 2026/27 farmgate milk price forecast to a midpoint of $9.50 per kgMS, narrowing the range to $8.50-$10.50. For the 2025/26 season, the forecast range was tightened to $9.60-$9.80 per kgMS, with the midpoint steady at $9.70, compared with a record $10.16 per kgMS paid in 2024/25.
Why it matters
The price shifts affect dairy farmers' income and signal market trends for global dairy supply.
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