Global Dairy Trade prices fall again

The most recent Global Dairy Trade (GDT) auction, held on 7th October 2025, revealed a 1.6% decline in the GDT Price Index, marking the fourth consecutive decrease. We have reviewed the further effect this will have on the UK milk price going forward.

GDT Price Movements by Product:

Butter: Decreased by 3.0%, bringing prices down from a peak near $8,000 to $6,712 per tonne.

Whole Milk Powder (WMP): Fell by 2.3%, with the average price at $3,696 per tonne.

Skim Milk Powder (SMP): Slightly declined by 0.5%, averaging $2,599 per tonne.

Anhydrous Milk Fat (AMF): Increased by 1.2%, reaching $6,916 per tonne.

Cheddar: Rose by 0.8%, with prices averaging $4,858 per tonne.

We’ve been asked a lot the reasons behind the decline in the global trade, there are couple of key reasons:

• Increase Supply – A surge in dairy production has led to higher volumes of products available for auction.
• Reduced Demand – Global demand has softened, particularly from key importing regions, leading to less competitive bidding.

UK Milk Market Update

UK farmers are already feeling the impact of market pressures, with significant milk price reductions announced for October and November. Recent adjustments include Parkham Farms (-8ppl), Freshways (-6ppl), and Wyke (-5ppl).

The combination of high domestic milk production and declining (GDT) prices is putting continued downward pressure on farmgate milk values. With supply exceeding demand and commodity prices softening, milk buyers are adjusting prices accordingly.

We are encouraging farmers to plan for further potential price reductions and explore strategies to manage costs, optimise production, and identify value-added opportunities to protect margins in the coming months.

For support in navigating these market changes and minimising their effect on your business, contact our Agricultural team today or call 01666 817278.