Fonterra's Matt Bolger on GDT Auction results and NZ agricultural outlook.

Fonterra's Matt Bolger reviews the recent GDT Auction, which saw a 4.6% increase in prices, with WMP up 6.2%. Beef + Lamb NZ chairwoman Kate Acland discusses her warm reception in Europe and declining livestock numbers. AgriZeroNZ CEO Wayne McNee defends investments in methane emissions reductions for farmers. Rabobank's Jen Corkran reviews the sheep and beef sections from the bank's May Agribusiness Monthly report, highlighting positive trends.

The latest Global Dairy Trade (GDT) auction saw a significant 4.6% increase in prices across the board, with whole milk powder (WMP) leading the way with a 6.2% jump. The auction, held on March 20, 2025, marked the second-to-last event of the current season and was characterized by fierce bidding, particularly from South East Asian markets [1].

Matt Bolger, Fonterra's managing director of co-operative affairs, highlighted the positive results, stating that the auction exceeded even the NZX dairy team's bullish expectations. The increase in prices is attributed to reduced milk supply from Europe and ongoing trade tensions between the US and Asian economies, which have contributed to a firm market [1].

Whole milk powder, which has the biggest impact on Fonterra's farmgate milk price, saw a significant 6.2% increase to US$4374/MT, the highest since April 2022. Other dairy products also performed well, with skim milk powder up 0.5% to US$2828/MT, butter up 3.8% to US$7992/MT, anhydrous milk fat up 5.4% to US$7212/MT, and lactose up 16.8% to US$1611/MT. Mozarella was the only product to see a decrease, dropping 0.3% to US$4752/MT [1].

The strength of global prices has supported expectations of record dairy company payouts for the 2024/25 season. Fonterra's farmgate milk price forecast for the season was narrowed to between $9.70kgMS - $10.30kgMS, with a midpoint of $10.00kgMS, following an earlier increase on December 5, 2024 [1].

In related news, Beef + Lamb NZ chairwoman Kate Acland discussed her warm reception in Europe and the decline in livestock numbers. AgriZeroNZ CEO Wayne McNee defended investments in methane emissions reductions for farmers, citing the importance of these efforts for the industry's future. Rabobank's Jen Corkran reviewed the sheep and beef sections from the bank's May Agribusiness Monthly report, highlighting positive trends in the sector [2].

References:
[1] https://www.nzherald.co.nz/the-country/news/gdt-dairy-prices-up-46-whole-milk-powder-jumps-62/Z7BLZCIGTZGPNFSOFQOYM23XLY/
[2] https://www.nzherald.co.nz/the-country/news/listen-to-the-country-online-fonterras-matt-bolger-on-an-impressive-gdt-result/243XQK567JGCRD4AAEGLO2ZBYE/