Global Dairy Prices Extend Decline Amid Ample Supply and Geopolitical Tensions

Tauranga, April 22 (Yaoxin) —Global dairy prices fell further at the latest overnight auction, as ample supply and geopolitical tensions weakened demand while driving up costs.

According to the Global Dairy Trade (GDT) auction results released on Tuesday, the average price at the fortnightly event dropped by 2.7% to US$4,143 per ton. This follows a 3.4% decline in the previous auction, which marked the first drop of the year.

Radio New Zealand (RNZ) on Wednesday quoted Cristina Alvarado, NZX Head of Dairy Insights, as saying that while New Zealand’s milk production has seen a seasonal decline, global supply remains ample. Meanwhile, steady output from Europe has added further downward pressure on fat values.

“Ongoing geopolitical tensions linked to the conflict involving Iran are driving up freight, insurance, and input costs,” Alvarado stated. She added that instability around the Strait of Hormuz and high oil prices have increased uncertainty, prompting many buyers to delay purchases in anticipation of lower costs and a clearer logistics outlook.

Photo: AFP / William West