Rabobank adjusts the global milk production forecast downwards

Rabobank's dairy analysts predict a global production growth of 0.4 percent in 2024, with a focus on developments in New Zealand where milk production volumes are rising rapidly but milk price expectations have been revised downward. Dairy farmers in New Zealand are cutting costs and limiting investments due to the challenging economic conditions. In the United States, milk production declined for the first time in July, indicating that dairy farmers are struggling with lower milk prices and higher costs. Additionally, in the European Union, milk production has seen mixed results with increases in some countries and declines in others. Prices for skimmed milk powder and other dairy products have been under pressure. Disappointing demand from China has affected the dairy trade, with more competition from New Zealand in other markets. EU dairy exports have shown moderate to strong growth, but more competition is expected in the third quarter. Rabobank analysts anticipate a small price drop in the milk price for European farmers in the coming months.