Further global milk supply growth and farmer margin gains are expected in 2025

Published 2024년 11월 29일

Tridge summary

A new report by RaboResearch forecasts a rise in milk supply from the world's leading exporting regions, specifically the 'Big 7', in the latter half of 2024 and into 2025. This is due to improved dairy farm margins resulting from increased farmgate milk prices and reasonable feed costs. However, global dairy demand is expected to remain mixed due to economic pressures. In China, milk production is predicted to decrease by 1.5% in 2025, while imports might increase by 2%. The report also cautions that potential trade disruptions due to geopolitical tensions, disease outbreaks, and the re-imposition of tariffs could impact dairy trade flows and production.

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

Original content

Milk supply growth from the world's biggest exporting regions is expected in the second half of 2024 and into 2025, according to a new report. Gains are anticipated in all major regions - the so-called 'Big 7' - for the first time since 2020, RaboResearch predicts. Rising farmgate milk prices and favourable feed costs are improving dairy farm margins, while global dairy demand remains mixed amid economic pressures. RaboResearch predicts a 0.5% milk supply growth from the Big 7 export regions in the second half of 2024. Michael Harvey, senior dairy analyst said: “Supply growth will maintain its momentum in 2025, with gains expected in all Big 7 exporting regions for the first time since 2020.” The report forecasts milk supply growth of 0.8% in 2025, with affordable feed costs and improved weather supporting milk supply growth. Firmer commodity prices have flowed through to dairy farmers in export regions, with local farmgate prices improving considerably in the second half of 2024. ...

Source: FarmingUK