Global milk prices will rise slowly in 2024, Rabobank

Cow Milk

Dairy

New Zealand

United States

Market & Price Trends

Published Mar 15, 2024

Tridge summary

Rabobank's senior dairy analyst, Lukas Foys, predicts a slow recovery in global dairy markets in 2024 following two quarters of milk production decline due to adverse weather, low profitability, sustainability, and regulatory issues. The US has seen a seven-month decrease in milk production, with cow numbers at their lowest since 2019. Foys anticipates a gradual increase in milk prices in 2024 due to rising demand, which could potentially improve farmers' profit margins if raw milk prices rise and feed costs fall.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Key global dairy markets are likely to see a slow recovery in milk production in 2024 following two consecutive quarters of declining production. This was reported in the Association of Milk Producers with reference to Rabobank's senior dairy analyst Lukas Foys. The expert believes that in the first half of the year milk production in Europe will fall, while in New Zealand it will remain at a stable level. In the US, milk production may decrease in the 1st quarter of 2024. According to the USDA, in January, American farmers milked 8.66 million tons of milk, which is 1% less than in the first month of 2023. Lucas Foys attributes the decline in global milk supply to adverse weather conditions, low profitability of dairy farms, as well as sustainability issues and regulatory issues affecting production volumes. In particular, in the USA milk production has been decreasing for seven months in a row, and the number of cows is currently the lowest since 2019. Farmers are forced to ...

Source: Agrotimes