Rabobank forecasts a decline in dairy exports in the first half of 2024 due to reduced milk production, but expects an increase in supply in the latter half of the year. Despite the decline, EU and UK dairy exports have become more competitive, especially to Africa and the Middle East, due to higher global dairy prices and a weaker euro. However, export growth may slow due to rising EU dairy prices and limited availability. In other news, livestock farmers are set to receive decisions on a subsidy offer by June 1, 2024, and will have six months to accept and meet the requirements.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.
Original content
Dairy exports will continue to decline in the first half of 2024. Higher milk prices promise European dairy farmers better margins. Rabobank expects an increasing milk supply in the second half of 2024. However, according to the bank, we should not expect major progress before 2024. Despite rising dairy and milk prices, milk production is lagging behind in major dairy exporting regions. In the fourth quarter, growth fell by one percent year on year. Rabobank expects this trend to continue in the first and second quarters of 2024, meaning that dairy exporting regions will only be able to recover from the decline in milk volumes in the second half of 2024. This means that milk volumes for the entire year of 2024 are expected to be at a similar level as in 2023. Recent market and geopolitical developments have helped the EU and the UK in their dairy exports, especially to (North) Africa and the Middle East. Thanks to higher dairy prices on the world market and a weaker value of the ...
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes.
To learn more about our cookies, please read our Privacy Policy.