Supply and demand expectations for the top 5 global dairy regions

At a 2024 World Dairy Expo breakfast event, Rabobank’s global dairy analysts provided an overview of the major dairy regions across the world in terms of their milk production capabilities and trade outlook. Mary Ledman, global dairy strategist, said Europe accounts for 30% of global dairy trade. New Zealand and Australia provide another 30%. The U.S. is half that at 15%. Along with South America, these regions make up over 80% of global dairy trade. Over the last three years, milk production in these regions has not grown. “We've seen growth in these areas at less than three-tenths of a percent – a fraction of the growth that they experienced in the last decade,” Ledman said. “Still, the world market has been supplied by enough milk, and that's largely because of the transformation that China has experienced in the last five years.” China moved from 70% to 85% self-sufficiency, which had a domino effect on global dairy markets. But now that the farmgate milk price in China is ...