World: New Zealand's dairy season ends with a mixed outlook

Published Jun 26, 2024

Tridge summary

In May 2024, the global dairy market witnessed several changes, including a decline in New Zealand's milk production but an increase in the Global Dairy Trade (GDT) index across multiple events. The rise in the GDT index was attributed to higher demand from the Middle East and southeast Asia, with prices for various dairy products increasing at auctions. However, milk production growth in other regions like the US, Argentina, Uruguay, and Europe remained slow. New Zealand's dairy exports saw a decrease, particularly in whole milk powder, while whey and whey protein concentrate exports surged. China's dairy imports experienced fluctuations, with increases in certain dairy products offset by decreases in others. Fonterra, New Zealand's largest dairy cooperative, provided a cautious forecast for the 2024/25 season, reflecting market volatility and uncertainty, especially with regards to Chinese demand. Despite challenges, the New Zealand dairy sector shows signs of optimism due to improved commodity prices and strategic adjustments by key players.

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

Original content

The global dairy market experienced various changes in May 2024, from production across key regions and New Zealand showing shifting trend results in exports. In the auctions that have taken place so far in this period, the Global Dairy Trade (GDT) index increased in both May events and also in June’s first event. GDT saw a 1.8% increase in the index at May’s 255 event, followed by a 3.3% rise in event 356, and a 1.7% surge in June’s 357 event. Prices for whole milk powder (WMP), skim milk powder (SMP), butter, and anhydrous milk fat (AMF) rose across all three events, mainly driven by lower volumes offered and sustained demand from the Middle East and southeast Asia, and occasional buying from north Asia. Milk production in New Zealand had a decline in April with 1.46 million tonnes of total milk collected, down -4.1% year-on-year (YoY). On a milk solids basis, the drop was -2.6%. Despite this, the season-to-date production is down only -0.5%, with a 0.8% increase in milksolids. ...

Source: Farmersweekly