An overview of the global dairy market

The European Union and Great Britain are experiencing a surge in raw milk production, leading to an oversupply and a drop in purchase prices due to high reserves of butter and milk powder. The weak demand for butter and cheese in the EU, coupled with China's reduction in dry milk imports, further exacerbates the problem. The European Commission anticipates a slight decrease in milk production in 2023. In contrast, the United States is seeing an increase in milk production due to more cows, with demand for butter remaining stable. However, there's a decline in demand for U.S. dairy products in Southeast Asia, as competition from the EU, Oceania, and Great Britain intensifies. New Zealand has increased milk production, focusing on whole milk powder and butter for export to Southeast Asia, which has seen a 60% rise in New Zealand milk powder deliveries. The Asia-Pacific region's stable import demand for products from Oceania, especially butter, has contributed to a global increase in butter prices in March.