World dairy market's precarious balance of milk supply and demand

Published 2024년 12월 13일

Tridge summary

The FAO Dairy Price Index experienced a surge in October, reaching its highest level since October 2023, driven by an increase in world cheese and butter prices. This is attributed to a limited supply, especially in EU member states due to a seasonal decline in milk production and high demand. In contrast, milk powder prices have fallen due to a seasonal increase in milk production in Oceania and weak global demand. The dairy industry in Europe faces challenges such as reduced feed supplies, higher production costs, and disease outbreaks, leading to a diverting of raw milk to more profitable products. There is also uncertainty about European dairy exports to China due to potential tariffs. In contrast, dairy-producing countries like the US, Australia, and New Zealand are dealing with their own issues, including high production costs and potential tariffs, which are impacting their dairy markets.

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

Original content

Georgy Kukhaleishvili, Analyst, Milk Producers Association WORLD MARKET The average value of the FAO Dairy Price Index in October was 139.1 points, which is 2.5 points (+1.9%) higher than the September figure and 24.5 points (+21.4%) higher compared to October 2023 (Chart 1). World cheese prices increased the most due to limited supply, especially in EU member states, where there is a seasonal decline in milk production. World butter prices also increased, which is due to high demand and a seasonal reduction in milk production in Europe. Milk powder prices decreased due to a seasonal increase in milk production in Oceania countries and sluggish world import demand. Chart 1. FAO Dairy Price Index Source: AVM research based on FAO data. According to clal. it, in January-September, milk production in the EU increased by 0.4% compared to the same period last year and amounted to 111.11 million tons (Figure 2). This year, Central and Eastern European countries have been hit by a summer ...

Source: MilkUA