World: Market narratives are shifting

Factors like unpredictable weather, fewer cattle and high feed costs have contributed to inconsistent milk production growth across the globe the past few years. However, analysts at Rabobank are expecting supply from the seven major milk-producing regions of the world to increase modestly over the second half of 2024 due to recent improvements in milk prices and cheaper feed. Rabobank’s Global Dairy Quarterly Q3 report provides a current snapshot of these major dairy regions of the world, as well as things to watch for as 2024 comes to an end. Things to watch The geopolitical situation in the Middle East has not improved, potentially weakening the demand for powders and impacting shipping costs. La Nina weather patterns to return later this year. China’s milk production growth to pause in 2025. Butterfat prices are likely to remain supported in the short term. China’s anti-subsidy probe into some dairy imports from the U.S. Bluetongue, a viral, insect-borne disease, is spreading ...