Global dairy market: Further milk supply growth and farmer margin gains expected in 2025

Published 2024년 11월 27일

Tridge summary

A new RaboResearch report predicts a surge in milk supply from the world's leading exporting countries in the latter half of 2024, with growth expected to persist into 2025 in all major regions, marking the first increase since 2020. This recovery is attributed to increased farmgate milk prices and reduced feed costs, which have bolstered dairy farm margins. Despite global dairy demand being influenced by economic pressures, with some areas experiencing deflation, there is optimism for a rebound in 2025. However, the report also highlights potential challenges, including the risk of protectionism in US markets, trade tensions, and investigations into EU dairy subsidies by China, as well as the need to monitor disease outbreaks like avian influenza in the US and bluetongue in Europe.

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

Original content

A new RaboResearch report expects milk supply growth from the biggest exporting regions in the second half of 2024. Growth is expected to continue into 2025, with gains anticipated in all major regions for the first time since 2020. Rising farmgate milk prices and favorable feed costs are improving dairy farm margins, while global dairy demand remains mixed amid economic pressures. “RaboResearch expects 0.5% milk supply growth from the Big 7 export regions in the second half of 2024, driven by significant seasonal peaks in Oceania,” says Michael Harvey, Senior Dairy Analyst at RaboResearch. “Supply growth will maintain its momentum in 2025, with gains expected in all Big 7 exporting regions for the first time since 2020.” RaboResearch forecasts milk supply growth of 0.8% in 2025. Affordable feed costs and improved weather are supporting milk supply growth. Firmer commodity prices have flowed through to dairy farmers in export regions, with local farmgate prices improving ...

Source: The Cattle Site