Goat Milk

Following a poor run of results in recent months, the Global Dairy Trade (GDT) has recorded a positive start to 2026.

The inaugural Global Dairy Trade (GDT) event of 2026, identified as Event 395, took place on January 6 and sent a positive message to the international dairy market. The GDT Price Index experienced a notable rise of 6.3% compared to the previous event, signifying a robust start to the year for global dairy prices.

Experts noted that the strong rise in the index (+6.3%) was largely driven by the significant share of milk powder—especially whole milk powder—in total traded volumes, which were considerably lower than at previous auctions.

The auction highlighted a strong buyer presence, with average winning prices hitting USD 3,533 per metric ton, indicating increased competition and willingness to pay among buyers. There were 177 registered bidders participating in the auction, out of which 114 emerged as successful buyers.

The auction was extensive, comprising 26 bidding rounds over a span of 2 hours and 57 minutes, underscoring the intensity and demand present in the market. The volume of dairy products traded ranged between 27,936 and 34,923 metric tons, with the total quantity sold amounting to 29,282 metric tons, consistent with recent events.

This strong performance in the first GDT of 2026 provides a positive outlook for dairy producers, processors, and exporting countries, who are closely monitoring international price trends following a cautious end to 2025.

The Whole Milk for Healthy Kids Act has successfully cleared (Dec 15, 2025) both chambers of Congress, signifying a significant policy reversal regarding milk options available in US schools. This legislation overturns a 2012 federal rule from the Healthy, Hunger-Free Kids Act which restricted school milk offerings to only fat-free or 1 percent varieties. The bill, championed by bipartisan support and expected to be signed by President Trump, aims to reintroduce whole and 2 percent milk options.

Dairy farmers and industry representatives have warmly welcomed this legislative change, viewing it as a potential market booster. Keith Kimball, chairperson of the Northeast Dairy Producers Association, noted that whole milk contains essential nutrients beneficial for children’s growth. The reintroduction of whole milk is seen as a way to meet children’s beverage preferences while promoting science-backed nutrition choices.

Economist Daniel Munch from the American Farm Bureau Federation noted that while the legislation might not result in substantial windfalls for dairy farmers, it is anticipated to have a measurable impact on dairy markets. Schools, serving nearly 4.9 billion lunches in 2024, could shift significant butterfat volumes from butter and cheese production back into fluid milk channels. This change may benefit smaller dairies by creating local farm-to-school supply opportunities.

Senator Kirsten Gillibrand emphasized the importance of the legislation for student nutrition and local agriculture, highlighting the National School Lunch Program’s influence on dairy demand. The program serves about 30 million students daily and accounts for approximately 7.5 percent of US fluid milk sales, thus playing a key role in shaping market dynamics.

General Mills has reported its fiscal second-quarter results, surpassing Wall Street expectations with adjusted earnings of $1.10 per share, above analysts’ projections of $1.02. Despite facing challenges from the sale of its yogurt business in North America, the company’s shares rose by 1.17% following the announcement. Net sales for the quarter ending November 23 reached $4.9 billion, exceeding the consensus estimate of $4.78 billion, though representing a 7% year-over-year decline.

The divestment of the yogurt business, which included the Yoplait brand, led to a 10% decrease in sales for the North American Retail segment, which saw a 13% fall in net sales. This strategic move is part of General Mills’ shift towards higher-margin categories with less competition from private labels, which have affected their fresh dairy market share. The yogurt segment, with its high perishability and logistical costs, has faced profitability pressures in mature markets due to consumer shifts towards plant-based or premium functional products.

Organic net sales, excluding acquisitions and divestitures, dropped by only 1% year-over-year, demonstrating the resilience of the remaining portfolio. Jeff Harmening, CEO of General Mills, noted that investments in product innovation, premium packaging, brand communication, and omnichannel execution are driving organic volume growth in North America, enhancing competitiveness across all segments.

The North American Pet segment saw an 11% increase in net sales, benefiting from the acquisition of Whitebridge Pet Brands. The International segment experienced a 6% growth, driven by strong performance in Brazil, China, India, and North Asia. This geographic diversification helps offset domestic market weaknesses, where private-label competition and consumer preferences for fresh, local, and less-processed foods pressure traditional categories like cereals and baking mixes.

General Mills has reaffirmed its fiscal 2026 outlook, expecting organic net sales to range between -1% and +1%, with adjusted operating profit and diluted earnings per share projected to decrease by 10% to 15% in constant currency. This cautious guidance reflects a transitional year post-dairy divestment, prioritizing reinvestment in strategic brands over short-term margin expansion.