Rising prices for raw milk and the cost of its production and decreasing supply on the world market in 2022
Cow Milk
Published Sep 23, 2022
Tridge summary
Since the second half of 2020, the global dairy market has been at a new level of prices and production costs. The prices of basic dairy products have been rising for the past two years and reached their maximum in the first half of 2022, namely in April and May.
Original content
This is written by the Telegram channel YourMilkBoard with a link to an article in the MilkPoint newsletter, which was prepared by Lorildo Aldo Stock and Jose Luis Bellini Leyte and is based on IFCN data. The global milk purchase price indicator, the IFCN index, which aggregates the prices of five major dairy producers, peaked in April at an all-time high of $0.63/kg, for standardized milk (4.0% fat and 3.3% protein). In June, the price fell by 12% to close at $0.56/kg. This reduction is caused mainly by the weakening of demand for dairy products in the world, especially from China. While milk production is declining, demand for dairy products is also falling. This leads to a balancing of purchase prices, but the cost of milk remains high compared to other years. Dry and hot weather in Europe has not helped production this season, and high production costs are limiting product supply. On the demand side, higher inflation in Europe and the US with the possibility of a recession is ...
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