Rabobank cuts global milk price forecast

Dairy producers, processors and consumers are all feeling the squeeze and a slight lift in global production, coupled with reduced demand, has led Rabobank to reduce its 2022-23 forecast from $9 to $8.60. In its Q1 2023 Dairy Quarterly report The Squeeze Is On, Rabobank says global dairy chain participants have all faced significant pressures during the early part of 2023. “Dairy producers’ milk prices have tumbled from their lofty 2022 levels while their cows digest new-crop feeds and forages priced at record highs,” Rabobank senior agricultural analyst Emma Higgins said. “Dairy processors and co-operatives are also feeling the pinch, having entered the year with expensive inventory, made with high-priced milk, which is now being discounted to clear the markets. “Meanwhile, consumers have been hampered by higher inflation and rising interest rates, resulting in more frugal purchasing behaviour. And while they haven’t left the dairy aisle, they are looking for value.” The report ...