Global demand for dairy products is recovering against the backdrop of a decline in raw material production

Published 2024년 6월 28일

Tridge summary

Dairy consumption is recovering globally, but milk production is declining in key regions, except for Central and Eastern Europe, where it is on the rise. The FAO price index for dairy products in April was 0.3 points lower than March and 4.3 points lower than April 2023. The reduction in milk production in northern Europe, including Denmark, Germany, the Netherlands, and Belgium, is due to decreased farm profitability, environmental constraints, labor shortages, and stricter regulations. The USDA reports an increase in raw milk production in Central and Eastern Europe due to warm weather and improved pasture supply, but a decline in the southern states due to rising temperatures. Global demand for dairy products is lower than expected due to inflation and high credit rates, and China is predicted to reduce its bulk milk powder imports by 20-30% this year.

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

Original content

While there are signs of a recovery in dairy consumption around the world, milk production is declining in key dairy regions. A certain exception are the countries of Central and Eastern Europe, where the production of raw materials is growing. In particular, dairy farms of Ukraine are increasing the volume of milk, while the purchase price for domestic raw materials in May was 26% lower than in the EU, which creates favorable conditions for increasing the volume of exports of exchange goods. WORLD MARKET The average value of the FAO price index for dairy products in April was 123.7 points, which is 0.3 points (-0.3%) less compared to March and 5.5 points (+4.3%) lower compared to April 2023 (graph 1). This year, in April, the prices of collected milk powder decreased due to sluggish import demand against the background of high export supply in Western Europe. Cheese prices decreased slightly, mainly due to the strengthening of the US dollar. At the same time, butter prices ...

Source: MilkUA