Rabobank predicts 'good year' for global dairy industry
Brazil
Published Mar 27, 2024
Tridge summary
Rabobank analysts forecast a return to profitability for the world's leading milk and dairy producers in the upcoming year, attributed to an increase in prices driven by reduced production costs. Milk production is expected to rise in the second half of 2024 across major regions including the EU, US, China, Brazil, Argentina, New Zealand, and Australia, although this expansion will require time. Despite facing challenges such as unfavorable weather and low production margins, positive trends are emerging in the dairy sectors of Brazil and Argentina. Australia is projected to experience a 3-4% increase in milk production during 2024-2025, with the US and China also anticipating growth. However, while US butter prices are expected to stay high, cheddar cheese prices might fall due to a boost in production capacity.
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
According to Rabobank, the world's largest producers of milk and dairy products will be able to return to profitability this year. Analysts predict an increase in prices for milk and dairy products against the backdrop of falling production costs. Milk production in the EU, US, China, Brazil, Argentina, New Zealand and Australia is expected to rise in the second half of 2024, according to Rabobank experts, although it noted that expansion will “take time”. Overall, the dairy sector in Brazil and Argentina is showing positive trends, despite unfavorable weather conditions and low production margins. The most notable increase in milk production is expected in Australia by 3-4% during 2024-2025. An increase ...
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