The first Global Dairy Trade (GDT) auction of 2026 saw an unexpected rebound in prices, with the index increasing by a substantial 6.8%. The main increases were for milk powders, with whole milk powder increasing by 7.2% while skim milk powder increased by 5.4%.
The increase in the GDT unwinds some of the cuts to the index in the last months of 2025, where consecutive cuts over the last nine auctions saw over 22% wiped off the value of dairy products sold at the auction.
A more positive outcome at this week’s auction was expected, given that the futures market for dairy in Asia continues to strengthen, while the futures market for US and EU dairy continues to decline.
The latest figures for Germany show that milk production in October 2025 was up a staggering 6.8% compared to October 2024, with local analysts reporting that supplies exceeded a 7% growth for November and December.
Despite these increases, total supply in Germany for 2025 is not expected to exceed 2024 by much, given that volumes were well back in the first half of the year.
Milk production in the US continues to track upwards, with supplies for November 2025 in the main milk producing states up by 4.7% compared to November 2024.
Cow numbers are up 2.3% compared to November 2024 and production per cow is also up, with each cow producing 2.1% more than they did in the same period last year.
Cow numbers in the state of South Dakota have increased by 10% over the past year while cow numbers in the state of Kansas have increased by over 25% with an extra 45,000 cows added to the dairy herd.
Across the US, there was an extra 214,000 cows in milk production as 2025 drew to a close. Milk production in New Zealand continues to be strong, with supplies up 3.4%, 2.8% and 2.6% for the peak milk months of September, October and November respectively.
The first Global Dairy Trade (GDT) auction of 2026 saw an unexpected rebound in prices, with the index increasing by a substantial 6.8%. The main increases were for milk powders, with whole milk powder increasing by 7.2% while skim milk powder increased by 5.4%.
The increase in the GDT unwinds some of the cuts to the index in the last months of 2025, where consecutive cuts over the last nine auctions saw over 22% wiped off the value of dairy products sold at the auction.
A more positive outcome at this week’s auction was expected, given that the futures market for dairy in Asia continues to strengthen, while the futures market for US and EU dairy continues to decline.
The latest figures for Germany show that milk production in October 2025 was up a staggering 6.8% compared to October 2024, with local analysts reporting that supplies exceeded a 7% growth for November and December.
Despite these increases, total supply in Germany for 2025 is not expected to exceed 2024 by much, given that volumes were well back in the first half of the year.
Milk production in the US continues to track upwards, with supplies for November 2025 in the main milk producing states up by 4.7% compared to November 2024.
Cow numbers are up 2.3% compared to November 2024 and production per cow is also up, with each cow producing 2.1% more than they did in the same period last year.
Cow numbers in the state of South Dakota have increased by 10% over the past year while cow numbers in the state of Kansas have increased by over 25% with an extra 45,000 cows added to the dairy herd.
Across the US, there was an extra 214,000 cows in milk production as 2025 drew to a close. Milk production in New Zealand continues to be strong, with supplies up 3.4%, 2.8% and 2.6% for the peak milk months of September, October and November respectively.
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