The average Global Dairy Trade (GDT) price index across 2023 decreased by 24% compared to 2022, dipping to a five-year low of 850 in August.

The dairy commodity trading company’s annual report published today (Thursday, February 22) shows that $2.4 billion was traded on GDT platforms in 2023.

The main milk powders, whole milk powder (WMP) and skim milk powder (SMP) accounted for 80% of the quantity traded.

Last year, GDT trading events recorded an average clearance rate of 91%.

In 2023, GDT events facilitated the trade of 708,997MT of products from seven sellers, across three supply regions: Europe, Oceania, and the US.

The sellers include Arla; Arla Food Ingredients; DairyAmerica; Darigold; NZMP; Solarec and Valley Milk.

In total, there were 432 bidders from 70 countries who took part in trading events with 515,018 lots being traded.


The report shows that the 12-month average prices for SMP and WMP decreased by 29% and 21% across 2023 respectively when compared with the previous year.

SMP dropped to a four-year low in September and WMP fell to an eight-year low in August.

The 12-month average for anhydrous milk fat (AMF) and butter was down by 20% and 15% respectively. Butter milk powder (BMP) was back by 39%, while cheddar dropped by 20%.

The 12-month average price of lactose was 45% lower when compared with 2022.

Mozzarella was added to the list of products offered for sale in December, meaning that eight dairy commodities are now traded.


Last year, GDT, which is jointly owned by Fonterra, NZX Limited and the European Energy Exchange (EEX), marked its 15th anniversary.

Along with providing a sales channel for globally traded dairy commodities, the platforms aim to “ensure credible price discovery in all market conditions”.

In 2022, GDT and Fonterra launched the pilot version of GDT Pulse which auctions Fonterra whole milk powder (WMP), instant WMP and skim milk powder (SMP) in weeks when GDT trading events are not held.

To date, 47,688 MT of product has been sold on GDT Pulse, amounting to a cumulative value of $144,743,875.

The average clearance rate for the products offered on GDT Pulse stands at 98%.

The auctions have typically consisted of an average of nine bidding rounds, with a total auction duration averaging 18 minutes.

Given the success of the trial, GDT said that it is considering investing in platform upgrades “to ensure scalability and explore the possibility of offering more auctions”.

It is also hoping to invite other sellers to offer their products on the platform to increase diversity and market opportunities.