The Milk Market (Baptiste Buczinski)
Here we bring you our Milk Market Outlook August report, covering Europe, New Zealand, China, and the USA. Get an in-depth look at the dairy industry through our detailed findings from comprehensive data analysis, keeping you informed about the latest market trends.
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GLOBAL RESULTS: MILK PRICE MARKET RESULTS
Limited by reduced deliveries in New Zealand or the United States, the global dairy supply has been in decline since the start of the year. Prices for butter and fats were still strong throughout the summer. But it remains a key driver on the market.
MILK PRICES IN EUROPE
Milk collection within the EU-27 has been on an upward trend since the beginning of the year. For the first half of 2024, it reached 74.6 million tonnes (+0.5% /2023). Prospects for recovery in the second half of 2024 appear limited, according to several experts. The spread of Bluetongue disease in the Netherlands, Germany, and France raises concerns about the future of milk supply. EU raw milk price has increased in July, at $50.21/100 kg (+1% /June 2024 and +4% /July 2023).
USA MILK MARKET TRENDS
Dairy production has been down since the beginning of 2024. In July, it was once again down year-over-year (-0.4% /July 2023), reflecting the decrease in the dairy cattle herd and the effects of heat and climate on the cows’ yield. The United States has been particularly active in the butter market and US raw milk price remained strong in July ($50.26/100 kg, = /June 2024 and +32% /July 2023).
MILK MARKET PRICES IN NEW ZEALAND
After a year-over-year decline in June (-0.9% /2023), the seasonal decrease in New Zealand’s production has now come to an end. After several months of decline, milk production was on the rise in July 2024 (+8.4% /2024), highlighting the strong demand for dairy products on the global market. NZ raw milk prices were on the rise in July. The average price reached $38.95/100 kg, (+22% /July 2023 and +4% /June 2024).
MILK MARKET PRICE IN CHINA
No change in the dairy market in China: weak demand for dairy products, overproduction and increasing stocks. Raw milk prices remained under pressure. In July 2024, average Chinese raw milk price was still down, at $44.55/100 kg (-15% /July 2023 and -2% /June 2024). China’s activity remains in decline on the global dairy market.
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