Global prices for dairy products are falling amid oversupply and geopolitical instability. According to Xinhua, pressure on the market is being exacerbated by high costs and weaker demand.
The average price at the two-week Global Dairy Trade (GDT) auction fell by 2.7% to US$4,143 per tonne, following a 3.4% drop at the previous auction – the first decline this year – according to GDT Events Results published on Tuesday (21 April 2026).
Global supply remains high despite a seasonal decline in milk production in New Zealand, whilst stable production levels in Europe are further adding to the downward pressure on butter prices, said Cristina Alvarado, head of dairy market analysis at the New Zealand Exchange, in comments to Radio New Zealand on Wednesday.
“The current geopolitical tensions surrounding the conflict involving Iran are driving up costs for freight, insurance and production resources,” said Alvarado, adding that disruptions in the Strait of Hormuz and high oil prices are creating additional uncertainty, forcing many buyers to postpone purchases in anticipation of lower costs and clearer logistics.
Source: Xinhua
