The war in Ukraine and the world dairy market

Published 2022년 4월 4일

Tridge summary

The article, originating from Rabobank, provides an overview of the current state and forecasts for the global dairy market, highlighting the impacts of the Russia-Ukraine conflict and various other factors. It notes a six-month consecutive rise in the FAO Dairy Price Index, reaching a record high in February 2022, attributed to a decline in global dairy supply and sustained import demand. The report emphasizes the effects of high energy prices, especially on the EU dairy sector due to its reliance on Russian gas. Additionally, the article points out the contribution of reduced milk production in major dairy countries, including the EU, the US, New Zealand, and Australia, which are experiencing various challenges such as weather conditions and farmer issues, leading to the ongoing price increases in the dairy market.

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

Original content

Rabobank writes that the war between Russia and Ukraine adds uncertainty to the already unstable world dairy market. "Imports of dairy products from the EU and the US played a role in the Russian market until 2014, when the embargo was imposed. At the same time, prices for feed, fertilizers and energy will rise significantly, "analysts said. According to a Rabobank study, high energy prices affect the entire economy: "However, in the dairy sector, this will have a particular impact on energy-intensive operations, including spray dryers for dried and whole milk and whey." Rabobank expects this pressure to be most pronounced in the EU, where about a third of gas supplies come from Russia. a little better. HOW THE WORLD DAIRY MARKET WAS DEVELOPING The average value of the FAO Dairy Price Index in February 2022 was 141.1 points (Chart 1), which is 8.5 points (6.4%) higher than in January. Thus, the growth of the index has been going on for the sixth month in a row, as a result of ...

Source: MilkUA