Fourth quarter to improve global dairy sector, Rabobank says

Published 2024년 10월 11일

Tridge summary

In 2024, the global dairy industry faced challenges such as adverse weather, decreasing cow numbers, and high production costs, leading to a decrease in milk supply in the first half of the year. However, improvements in feed prices and inflation for farm inputs have helped improve margins. Rabobank predicts a slight growth of 0.14% for the year, with more significant growth of 0.65% in 2025. The report also notes that global wholesale prices have risen due to low supply, with variations in milk production across regions like the US, Europe, UK, and Oceania, and the potential impact of the EU-China trade dispute and La Niña weather events in New Zealand.

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

Original content

Adverse weather conditions, declining cow numbers and high production costs held back global dairy supply in 2024 and contributed to a year-on-year reduction in milk supply during the first half of 2024. However, with more affordable feed prices and lower inflation for farm inputs, margins are improving, according to Rabobank's latest report, analysed by the British dairy trade group. For the main exporting regions, Rabobank forecasts an improvement for the third and fourth quarters, resulting in a small growth of 0.14% year-on-year for 2024, followed by a larger growth of 0.65% in 2025. Global wholesale prices have been improving as the market reacts to low supply. According to Rabobank, quotations are starting to be reflected in milk prices at source. Compared to June 2023, EU prices are up 4% and Ireland is up 12%. China is an exception, where high milk production and weak demand have pushed prices down. Production changes and the ongoing EU-China trade dispute are likely to ...

Source: Agrodigital