In the fourth quarter of 2025, whole milk powder prices fell sharply across global markets. The decline was driven by continued high milk production from major exporters, including New Zealand, the EU, the US, and South America. Milk supplies were abundant, and processors produced large volumes of dairy products, leading to oversupply in the market.
The Global Dairy Trade (GDT) index showed a significant downward trend, with WMP falling more than other commodities. Butter and other fat-rich products also experienced strong declines, highlighting broad weaknesses in the dairy market rather than isolated issues. Despite high production, demand remained steady but did not keep pace with the growing supply. Seasonal factors and softer buying from key regions, including Asia and Oceania, further contributed to price pressure. Market participants reacted cautiously, with buyers limiting purchases. Export volumes were high, but the ample supply of available WMP kept prices under pressure.
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According to Procurement Resource, Whole Milk Powder prices are expected to stay under pressure in early 2026 unless global demand rises or supply growth slows.
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During Q3’25, whole milk powder (WMP) prices showed a clear downward trend as global supply outpaced demand. The quarter began with relatively stable prices, but as milk production picked up in major exporting regions like New Zealand, the U.S., and South America, pressure on prices increased.
New Zealand's early-season collections were particularly strong, recording significant growth, while the U.S. and Argentina also reported higher output. This added a surplus of milk being processed into powders, leading to increased availability in the global market.
Meanwhile, demand from key importers like Southeast Asia and China was mixed. While China maintained steady purchases, Southeast Asia reduced its imports compared to the previous year. With more milk being sent to dryers and slower buying interest from some regions, WMP prices faced consistent pressure throughout the quarter. By the end of Q3, multiple Global Dairy Trade auctions reported notable declines in WMP values, with some of the steepest drops seen in the final auction of the period.
Whole Milk Powder or WMP is extracted by eliminating water from pasteurised, homogenised whole milk or full cream milk as it is through the process of evaporation and spray drying. Whole Milk Powder possesses all the appealing qualities of fat fitted milk and, in its dry form, it serves as a crucial ingredient in the production of a remarkable and diverse range of dairy products. It is dried grade A milk, ready to re-hydrate with water.
Sweets, Bakery, Chocolates, Cream, Butter, Cheese, Confectioneries
Arla Foods Amba, Dairy Farmers of America Inc, Nestlé SA, Danone S.A, Westland Milk Products
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Whole milk, which is the starting material of this production process, is produced from a chain of industrial processes, where pasteurisation plays a major part. In this process, pasteurised whole milk is concentrated in an evaporator, reducing the content to almost 50% milk solids. The concentrated milk obtained in the previous step is then sprayed into a heated chamber, almost instantly evaporating the water content and leaving behind fine powdered particles of milk solids.
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