Based on the auction results, prices for key commodities rose, and the price index increased once again, although lactose and buttermilk powder became cheaper.
On Tuesday, March 3, the 399th GDT auction took place, resulting in a price index of 1271, which is 69 points (+5.7%) higher compared to the previous trading event. The average price for dairy products was 4,301 USD/mt, up 273 USD from the previous auction results. During the event, 18,861 tons of commodities were sold, which is 3,379 tons less than the previous auction results. The minimum supply was recorded at 17,734 tons, and the maximum at 21,818 tons. 165 dairy market operators participated in the auction, which is 2 companies fewer than on February 17.
According to the auction results, the price for Anhydrous Milk Fat (AMF) was 7,147 USD/mt, an increase of 5.7% compared to the previous auction. Prices were likely influenced by the fact that the peak of seasonal milk production has already passed in Oceania and South America. According to USDA data, milk fat prices continued to decline in Europe due to persistent buyer caution and difficulties in product distribution. According to the GDT forecast, AMF prices may increase by 7.1% in April and 6.2% in May.
The price for Butter at this auction was 6,728 USD/mt, up 6.1% from the previous auction results. According to USDA data, dairy processing plants in all U.S. regions are operating at or near maximum capacity due to sufficient cream supply and stable milk production. Processors are building butter inventories ahead of seasonal milk yield slowdowns and to meet domestic demand, which remains steady in both the retail and food industry segments. International buyer interest remains stable, and in some cases high, supporting production volumes and limiting the availability of high-fat butter on the domestic spot market. In Europe, butter prices rose last week amid improved activity from buyers covering their short-term needs. According to the Farmer’s Journal, the butter price at the end of February was 4.12 thousand EUR per ton, approximately 30 EUR more than the previous week.
In Oceania, butter prices rose due to the end of the peak raw milk production season and increased buyer demand. The blockade of the Strait of Hormuz following the U.S. and Israeli military operation against Iran, along with threats from Yemeni Houthis in the Red Sea, are complicating logistics routes from Europe to Asia and from Oceania to MENA countries, leading to longer delivery times and higher transport costs. Commercial vessels are now forced to take the long route around the Cape of Good Hope and the west coast of Africa instead of the Suez Canal route. Auction organizers expect the butter price to increase by 5.5% in April and potentially 6.9% in May.
The price for Whole Milk Powder (WMP) was 3,863 USD/mt, up 4.5% compared to the previous auction results. According to USDA data, WMP prices rose in the U.S. and Europe following the upward price trend for butter and skim milk powder. The commodity became more expensive in Oceania as the peak production season concluded and export market demand remained significant. Demand for WMP from South America decreased in African countries. Auction organizers forecast a price increase for the product of 3.8% in April and 4.3% in May.
The price for Skim Milk Powder (SMP) was 3,243 USD/mt, an increase of 9.1% compared to the previous auction results. According to the USDA, demand for the product slowed down in the U.S. and Mexico. SMP prices rose in Europe due to stable demand in export markets. Demand for agricultural products is growing in Muslim countries ahead of Ramadan. According to the Farmer’s Journal, as of the end of February, the SMP price reached 2.45 thousand EUR per ton, returning to the levels of 2023, 2024, and the first half of 2025. Reduced inventories and the seasonal slowdown in milk yields led to a rise in SMP prices in the lower price range in Oceania. According to the GDT forecast, SMP may become 10.7% more expensive in April and 9.4% in May.
Cheddar cheese became more expensive, reaching 4,920 USD/mt (+4.3%), and Mozzarella rose to 4,189 USD/mt (+7.9%). According to USDA data, active cheese demand in export markets contributed to higher Cheddar prices in Oceania’s lower price range. China reduced import duties on European cheeses from 43% to 11.7% following the conclusion of an anti-subsidy investigation. Among European traders, there are concerns regarding increased competition in the Chinese market from Oceania-based cheese suppliers. In the U.S., cheese demand slowed in the food industry sector, but demand for American cheeses remains high in export markets. Demand for cheese rose in the EU in the first quarter of 2026. European cheeses are in active demand on export markets. According to the Farmer’s Journal, there was a slight decrease in cheese prices at the end of February. Despite this, the market remains optimistic, and buyers are active due to fears that prices may rise even further. Auction organizers expect Cheddar prices to increase by 4% in April and 5.3% in May, while Mozzarella could rise by 8.3% in May.
Lactose became cheaper, dropping to 1,459 USD/mt (-3.9%). According to USDA data, active demand and limited warehouse stocks support high lactose prices. In the spring, there is a seasonal decline in the production of pharmaceuticals, where lactose is used as an ingredient. Auction organizers forecast a 3.9% decrease in lactose prices in May.
Buttermilk Powder (BMP) decreased slightly to 3,145 USD/mt (-0.2%). According to USDA data, demand for BMP in export markets remains active. Auction organizers forecast a 4.4% price decrease for buttermilk in April, but a 1% increase in May.
The next GDT auction will take place on March 17.
Press service of the Association of Milk Producers
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