We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry. current time
Global butter prices fall 2.5 pc on supply surplus
The sources reported that the trade analysts opined that Global butter markets were entering a correction phase after long period of higher prices. It was at the latest Global Dairy Trade (GDT) auction, that the butter prices fell by 2.5 percent, reaching USD 6,969 per tonne or NZD 11,882. The prices marked a continued decline from the near-record peak of almost USD 8,000 per tonne recorded earlier in May 2025.
The current prices, even after recent softening, remain above last year’s levels, when butter was seen closer to USD 6,675 per tonne. The adjustment reflects a rebalancing in global supply and demand dynamics rather than a sharp collapse, the analysts maintained.
The reasons behind this collapse was said to be a rise in global supply. Major producers, including New Zealand and the European Union, have increased output, creating pressure in export channels. The increased production was outpacing demand growth, particularly in Asia, where consumer markets are still hungry of imports.
The other dairy commodities reinforced the declining trend. At the same GDT event, whole milk powder (WMP) prices fell by 5.3 percent and skim milk powder (SMP) by 5.8 percent, indicated broad-based reduction rather than an isolated adjustment in butter.
As far the demand side, the importers were seen cautious regarding purchases. Some importers have slowed purchasing activity, waiting for the implications of existing inventories and slower consumer trends. While retail butter prices in key markets had surged by more than 50 percent in recent months, particularly for standard 500g blocks, but, wholesale price declines are expected to take time to reach down to consumer shelves. The logistics costs and ongoing inflation in food supply chains remain other factors, the analysts maintained.
However, the analysts expected butter prices to remain under downward pressure through the remainder of 2025. Supply pipelines remain full, and with a weaker demand from China and parts of Southeast Asia. The exporters such as New Zealand may continue to face margin depression, they said.
Accordingly, the producers were expected to face the challenge in managing higher on-farm costs for feed, energy, and storage against a softer price environment. For global buyers, however, the adjustment represents an opportunity to secure contracts at more favourable levels, particularly when the seasonal demand increases toward the year-end holiday period.
