Global Dairy Market Braces for Price Cuts as Supply Outpaces Demand, Fonterra in Focus
- ZISK
- 12 minutes ago
- 1 min read
The global dairy market is currently navigating a period of significant imbalance, with a robust surge in supply threatening to overwhelm sustained, albeit not sufficiently strong, global demand. This dynamic is placing considerable downward pressure on dairy commodity prices worldwide, prompting concerns among major industry players, most notably New Zealand's dairy giant, Fonterra Co-operative Group Limited (NZX: FSF), which is facing mounting pressure to revise its farmgate milk price forecasts downwards for the current 2025/26 season.
As of November 2025, the market sentiment is decidedly bearish, driven by an expanding global milk supply that is outpacing consumption. While long-term demand growth remains positive, the immediate glut in supply has led to consecutive declines in Global Dairy Trade (GDT) auction prices, signaling a challenging period ahead for dairy farmers and processors globally. The implications extend beyond pricing, touching upon profitability, strategic decisions, and the competitive landscape for dairy producers.
By: MarketMinute
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