The increase in European milk prices is coming back, according to Rabobank

Published 2024년 3월 12일

Tridge summary

Rabobank forecasts a more profitable milk production in the first half of 2024 due to improved margins and increased milk prices. Despite an anticipated decline in milk supplies in the first two quarters of 2024, a surge is expected in the latter half of the year. The EU and UK milk markets have been bolstered by recent market and geopolitical developments, especially in terms of milk exports to North Africa and the Middle East. The EU milk market remains tight due to reduced production and increased export volumes of butter and skimmed milk powder, despite stable milk prices.

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

Original content

Better margins and higher milk prices are expected Rabobank predicts that milk production will become more profitable in the first half of 2024. After margins were in some cases weak or negative at the end of 2023, the first dairies have increased milk prices in recent months. EU producer prices are expected to continue to rise. Given the higher fat and protein content, the 50-cent price comes back into focus. Rabobank currently expects the average milk price in Europe to be 47.5 cents/kg. Milk supplies continue to decline In the fourth quarter of 2023, milk supply in the EU and the UK fell more than expected: producers delivered 1.7%. less milk. The reason was wet weather and deteriorating margins. At the end of the year, the dairy herd in producing countries also declined slightly more sharply (-1.5% than the average in recent years (-1.2%). The lower amount of milk had a particular impact on the production of skimmed milk powder (-8.1%) and butter (-2.1%). However, the ...

Source: Farmer.pl