March 28, 2024
Welcome to Freshagenda’s Global Dairy Weekly – a newsletter with insights derived from our Global Dairy Directions platform. Our newsletter covers major events in domestic and global dairy markets. Feel free to forward it to your colleagues.
First Take:
A surge in dairy exports at low prices is evident in the January trade data, with the milk solids equivalent of shipments up 7.7%. New Zealand exporters have been at the forefront of this clearance sale, with the trend continuing into February. NZ milk solids equivalent exports were up 50% for the month, and up 27% for November to February. We take a deep dive into these trends in this week’s video, check it out below.
Meanwhile, EU milk production was down slightly in volume for January, although milk solids were flat YOY. EU manufacturers continued to prioritise cheese manufacture at the expense of SMP and butter. December inventories for butter were also well down for both butter and SMP. The data offers some context for the elevated butter prices that have continued well beyond the festive season. Low availability and good domestic demand have supported butter prices, while SMP is missing demand.
This week’s highlights include:
- NZ-EU FTA finalised
- Pulse drops
- Global trade up 7.7% in January
- US February butter stocks bearish
- EU-27 milk down 0.9% in January
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