The main dairy trends in the global markets: Shortages of milk and fats heat up prices

Published 2024년 9월 12일

Tridge summary

The FAO's latest report shows a slight decrease in the global dairy price index in July, despite an overall increase of 8.6 points from the previous year. This decrease was primarily due to a drop in global milk powder prices, attributed to sluggish demand and a slowdown in Western European market activity. In contrast, butter and cheese prices continued to rise, with butter experiencing its tenth consecutive monthly increase due to reduced export supply and high domestic demand. Cheese prices also rose due to increased demand in Southern Europe and China. However, milk production in key exporters like Western Europe, the US, and Australia faced challenges such as heat, humidity, and flooding, leading to a raw milk shortage and reduced production of certain dairy products. Australia's dairy industry also struggles with rising costs, labor shortages, adverse weather, and competition from imported dairy products.

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

Original content

WORLD MARKET The average value of the FAO price index for dairy products in July was 127.7 points, which is 0.1 points (-0.08%) less and almost equal to the June figures. However, the index grew by 8.6 points (+7.2%) relative to July 2023 (Chart 1). The increase in butter and cheese price indices was almost completely offset by the decrease in milk powder prices. Sluggish import demand, particularly in the spot market, contributed to the decline in global milk powder prices recorded in July, partly due to a slowdown in market activity in Western Europe due to the summer vacation period, even with low inventory levels and a seasonal reduction in milk production in Oceania. World butter prices have been rising for the tenth month in a row, due to a reduction in export supply in Western Europe against the backdrop of consistently high domestic demand, low stock levels and a seasonal reduction in milk production. World cheese prices rose under the influence of active domestic demand ...

Source: MilkUA