January 30, 2026

Prices of global dairy commodities increasing despite abundant milk supplies

Global dairy commodity prices are unexpectedly rising even though major milk exporters are reporting abundant milk supplies, according to the latest Rural News Group market report.

The Global Dairy Trade (GDT) platform registered its second consecutive price increase, reversing several months of softer results and signaling renewed buyer interest in milk powders and related dairy products.

Detailed results show whole milk powder prices soared by about 15% while skim milk powder climbed over 2%, surprising many analysts who anticipated price suppression under current supply conditions. These increases come as milk production continues at strong levels in key regions such as New Zealand, where season-to-date output was up 2.4% (3.1% on a milksolids basis) compared with the same point in the prior cycle.

Economists and market watchers noted that these gains are especially notable given the backdrop of plentiful global milk flows. New Zealand's collections in December were among the highest for that month on record, narrowly trailing historical peaks, while ample outflows in the Northern Hemisphere, including reported milk dumping in the United Kingdom, underscore how supply remains plentiful.

Part of the pricing resilience reflects tight inventories in some importing regions, particularly in the United States, where limited stocks are helping to underpin skim milk powder demand internationally. This dynamic illustrates how regional imbalances in supply and demand can counteract broader global milk surpluses, at least temporarily supporting dairy commodity price momentum.

Looking ahead, analysts cautioned that the market remains finely balanced. While production across major exporting countries stays robust, sustained price gains will depend on how effectively demand maintains pace with supply, especially as seasonal peaks transition and inventories adjust.

- Rural News Group