Price update in the global dairy market

Although a warning of a fall in international dairy prices is in order, it could be milder for the European Union (EU). European prices are currently largely determined by regional dynamics. This will make the EU more separate from the United States (US) and New Zealand (NZ). Curious about this and what the effect is on the milk price? You can read this and more in this update. Worldwide growth in milk production is lagging compared to last year (see figure 1). The international dairy market changed course in the third quarter. From extreme tightness to a modest easing, which has now become visible in the price quotations for dairy products in Oceania. This turnaround is largely due to expected growth in milk production in the fourth quarter, weaker Chinese import needs and more limited demand for dairy in emerging economies. Rabobank expects the fourth quarter of 2022 to be a period of modest growth for the seven largest exporting regions. This stops the decline for five quarters ...