A volatile start to 2026 has put global dairy markets back in the spotlight, with a sharp lift in the latest GlobalDairyTrade auction offering some early-year optimism for farmers.

In this episode, Anne Lee speaks with Stu Davison from HighGround Dairy to unpack what’s behind the 6.3% rebound in the GDT index after a prolonged run of declines. Stu explains how aggressive buying from the Middle East, shifting oil prices and heightened geopolitical tension have combined to drive short-term support across powders and milk fats, despite global milk supply continuing to run hot.

 

Host:

• Anne Lee, Senior Journalist, Dairy Country

Guest:

• Stu Davison, HighGround Dairy

 

Stu breaks down what’s happening across key regions, including strong production growth in the US and Europe, steady but subdued demand from China, and the implications for New Zealand as the season moves into its tail. He also looks ahead to the months and seasons to come, outlining why oversupply remains the dominant risk, what that means for milk price expectations, and how tools such as futures and higher-value processing will be critical for farmers navigating another year of volatility.

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