The GDT Price Index rose 6.3% to an average winning price of US$3,533/metric tonne, its first gain after nine consecutive drops.
Whole milk powder prices rose 7.2% compared to the last auction to reach US$3407/MT. In mid-August 2025, WMP price had reached US$4036/MT and in May last year it had topped US$4374/MT.
The high prices had triggered a boost in global milk production, which caused prices to fall in recent months.
While price increases had been anticipated, the magnitude of the move materially exceeded expectations, driven primarily by stronger-than-forecast demand – most notably from the Middle East.
NZX head of dairy Cristina Alvarado notes that total volumes offered declined from the previous event, consistent with New Zealand milk production moving past peak.
“The combination of lower available supply and a broad improvement in regional participation pushed prices higher across all commodities offered,” she says.
“Buying activity increased across most regions, with only North Asia and North America reducing their share compared with previous event.”
North Asia remained the dominant buyer overall, accounting for 44% of total volumes sold, down from 58% at the prior event, yet still leading purchases across WMP, skim milk powder, AMF, butter and cheddar.
Alvarado says the most notable shift came from the Middle East, where buying share nearly doubled from 11% to 21%. This region emerged as the second-largest buyer of WMP and was a key contributor to the 7.2% lift in the WMP price index. SMP demand was more diversified, with meaningful participation from SEA/Oceania and Europe.
Alvarado says that overall, the latest GDT event reinforced the sensitivity of prices to shifts in regional demand when platform volumes tighten.
“While hand-to-mouth buying behaviour remains evident, the strength and breadth of this event highlight that latent demand can re-emerge quickly when availability declines, amplifying price responses across the GDT complex.”
