World milk prices increase

The article highlights significant developments and trends in the global dairy industry as we move into the second quarter of 2023, covering various aspects such as technological advancements, milk supply, and market dynamics across key regions like New Zealand, the US, Ukraine, Russia, and Zimbabwe.

In New Zealand, expert Melissa Clark-Reynolds discusses the game-changing impact of a new technology that processes fermented milks, forecasting a major disruption to the dairy industry, particularly the dairy ingredients market. This innovation is expected to influence milk prices as production costs decrease. In the US, there's an observation of dairy cow prices reaching an average of $1.72 thousand per head in April 2023, remaining stable from January 2023 but showing a 10% increase from the previous year, attributed to falling milk prices and profits.

Meanwhile, in Eastern European countries like Ukraine and Russia, the dairy sector is experiencing positive growth, with Ukraine's dairy exports seeing a substantial increase in the first quarter of 2023, primarily to neighboring countries. Russia's Krasnodar region is also witnessing a rise in milk production, aiming for a 5% increase by the end of 2023.

In Zimbabwe, the government's efforts to enhance fresh milk production through farmer training and resource provision are yielding results, with a 5% increase in total milk production in the first quarter of 2023 compared to the same period in the previous year. Despite these achievements, the industry faces challenges such as high production costs, low productivity, and limited access to finance and markets.

These insights offer a comprehensive view of the current state of the global dairy industry, highlighting both challenges and opportunities for stakeholders within the sector.