Price update in the global dairy market

Published 2022년 9월 7일

Tridge summary

The international dairy market is expected to see a mild easing in prices, driven by expected growth in milk production and weaker demand in China and emerging economies. However, Europe may be more insulated from these trends due to regional dynamics. Milk production in the EU and UK has declined, while the US and New Zealand have seen increases. Factors such as weather conditions, import tariffs, and dependence on Ukraine and Russia for resources contribute to the EU's more independent pricing. There are concerns about the affordability and availability of natural gas for the dairy industry, and prices for dairy products and grain have fluctuated. Overall, Rabobank anticipates a period of modest growth for the seven largest exporting regions in the fourth quarter of 2022.

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

Original content

Although a warning of a fall in international dairy prices is in order, it could be milder for the European Union (EU). European prices are currently largely determined by regional dynamics. This will make the EU more separate from the United States (US) and New Zealand (NZ). Curious about this and what the effect is on the milk price? You can read this and more in this update. Worldwide growth in milk production is lagging compared to last year (see figure 1). The international dairy market changed course in the third quarter. From extreme tightness to a modest easing, which has now become visible in the price quotations for dairy products in Oceania. This turnaround is largely due to expected growth in milk production in the fourth quarter, weaker Chinese import needs and more limited demand for dairy in emerging economies. Rabobank expects the fourth quarter of 2022 to be a period of modest growth for the seven largest exporting regions. This stops the decline for five quarters ...

Source: Melkveebedrijf