Rabobank predicts 'good year' for global dairy industry

Rabobank analysts forecast a return to profitability for the world's leading milk and dairy producers in the upcoming year, attributed to an increase in prices driven by reduced production costs. Milk production is expected to rise in the second half of 2024 across major regions including the EU, US, China, Brazil, Argentina, New Zealand, and Australia, although this expansion will require time. Despite facing challenges such as unfavorable weather and low production margins, positive trends are emerging in the dairy sectors of Brazil and Argentina. Australia is projected to experience a 3-4% increase in milk production during 2024-2025, with the US and China also anticipating growth. However, while US butter prices are expected to stay high, cheddar cheese prices might fall due to a boost in production capacity.