Global dairy prices at the top, but with clouds

Published 2022년 7월 18일

Tridge summary

The article explains the factors contributing to the rise in dairy prices, including the war in Ukraine, increased fertilizer costs, and drought in South America. New Zealand, a major dairy exporter, has seen significant price increases in butter, skim milk powder, and cheddar cheese. Factors such as reduced milk production, high costs, and supply chain challenges are leading to global supply shortages. China's appetite for New Zealand dairy is increasing, despite efforts to protect the country from rising costs. The Rabobank report suggests that China's consumption of dairy could significantly impact the market, as it accounts for about 25% of global dairy consumption.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In late April the stars aligned. The war in Ukraine, the increase in fertilizers, the stagnant production of the United States and the drought in South America. Everything worked in favor of raising dairy prices. You need to look at the numbers from New Zealand, the engine of dairy exports. In April, the ton of butter from that country reached US$ 6,975, an increase of 21.8% compared to the same date in 2021. If the comparison is extended to two years, the increase is 65.6%. The trend is repeated with skim milk powder and New Zealand cheddar cheese, which in April reached $4,613 and $6,350, respectively. To put those numbers into perspective, in early 2018, Oceania skimmed milk powder was worth just $1,775 a ton, while cheese was worth just $3,388. With the arrival of May, international prices began to show a slight deceleration, but always looking at historical levels. What happens abroad ends up affecting the results of local producers. Therefore, the eyes of the sector are not ...

Source: Milkpoint