Correction in the global market continues; milk price follows falling trend of raw material prices

Published 2023년 3월 7일

Tridge summary

The dairy market has experienced instability in the first quarter of the year due to a mismatch between milk prices and market values. This is reflected in the rising surplus of milk in Europe and the United States, leading to a anticipated correction in milk prices with a slight delay. However, high costs like feed, fertilizer, and diesel, despite falling raw material prices, are eroding margins for farmers. Consequently, European dairy prices have dipped, but Rabobank predicts that butter and cheese prices have likely hit their lowest point, although an increase in farm milk prices is not expected until the second quarter. Meanwhile, consumer prices in the dairy sector are rising due to inflation.

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

Original content

The dairy market in the first quarter of this new year was characterized by turbulence and volatility. The milk price will be corrected with a noticeable delay, says Danielle Duijndam, dairy specialist at Rabobank, in an article about market developments in dairy that was published today. There is talk of a 'mismatch', which currently leads to a correction of the milk price. Not only in the Netherlands, but also in other European countries, dairy farmers can count on falling milk prices. Europe and the United States are showing growth in milk production, which means that, according to Rabobank, the market is moving from a small shortage of milk to a slightly surplus of milk. The new year started in the Netherlands with an increase in milk production, as in January with 4.6 percent. Dutch dairy farmers are in a good position to maintain production as much as possible. The high milk prices, in combination with the mild winter so far, are an incentive for this. Prices for important ...

Source: Melkveebedrijf