Global dairy markets have rebounded, with international dairy prices strengthening in recent months. The benchmark Global Dairy Trade index recently hit a 30-month high, jumping 3.7% and reaching levels last seen in mid-2022.

Key drivers include rising demand from Asia—China’s increased imports and tight global supply have lifted prices for products like whole milk powder and lactose. In fact, lactose saw an exceptional +17.7% price leap at the latest auction amid high demand. Major exporters, including the EU, New Zealand, and the U.S., report strong buyer interest, especially for skim milk powder and butterfat, as buyers look to secure coverage ahead of further price increases.

While dairy farmers face higher feed costs, squeezing margins, the current market upswing offers an opportunity to recover. Analysts note that global milk output is only modestly rising, so if import demand from China or the Middle East continues to grow, dairy prices may remain elevated.