Weekly Product Updates

W36: Dairy Update

Cow Milk
Published Sep 15, 2023

In W36 in the dairy landscape, the world's major dairy exporting countries collectively increased milk production by 0.8% year-on-year (YoY) in H1-23. Milk supplies rose by 0.7% YoY within the European Union (EU) in the first six months, with a 0.3% YoY uptick in Jun-23. However, there were significant variations among EU countries, with Belgium, Germany, the Netherlands, and Poland showing notable production increases while southern Europe grappled with drought-induced declines. Ireland also faced sustained milk production challenges. Although Dutch milk supply growth slightly slowed since May-23, Jul-23 witnessed a 1.8% YoY increase, totaling a 2.9% YoY rise in milk supply in the first seven months of 2023.

Furthermore, falling milk prices impacted cattle slaughters, with nearly a 12% increase until W33 of 2023 compared to the same period in 2022. Butter prices remained relatively stable in Aug-23. However, a subdued market with limited buyer interest was noted, primarily due to the strong demand for fresh cream affecting butter supply. Skimmed milk powder prices have steadily declined since mid-Jun-23, driven by weak demand and sufficient supply. This downward price pressure is expected to persist due to cheap supply from Oceania in the global market.

The Institute for Agricultural, Fisheries, and Food Research (ILVO) reported that Flemish milk production in Belgium boasts the world's lowest carbon footprint, emitting just 0.99 kilograms (kg) of carbon dioxide (CO2) equivalents per liter. This remarkable achievement is attributed to Flanders' expertise in grassland management, manure processing, and cattle-appropriate ration composition. Careful cattle breed selection, disease prevention, and animal welfare practices also contribute.

Some of the suggested measures to decrease carbon footprints in Flemish milk production include adjusting cattle diets, using domestic protein sources instead of overseas soy, reducing fertilizer usage, switching to grass-clover, and extending cow lifespans. These findings align with Flemish climate goals aimed at reducing enteric emissions by around 27% by 2030 compared to 2018.

Lastly, Ukraine’s State Customs and Service reports that Ukrainian non-condensed milk and cream exports reached 15.7 thousand metric tons (mt), valued at USD 9 million from Jan-23 to Jul-23. This represents a 2.6% YoY increase in volume and a 2.3% rise in value. Ukraine’s shipments were primarily destined for Moldova, accounting for 91.2%, Georgia at 3.4%, and Armenia at 3%. Ukrainian condensed milk and cream exports reached 17.4 thousand mt, worth USD 43.9 million in the first seven months of 2023. This indicates a 32.8% YoY surge in volume but a decrease of 6.2% YoY in value. Ukraine’s condensed milk and cream shipments were primarily destined for Poland at 21.9%, Bangladesh at 11.6%, and Israel at 9.2%. 

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