April 25, 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:
Milk production fell in US and NZ in March, while trends were mixed in the EU. It’s the European spring that has the focus for most analysts, cold and wet conditions —particularly Ireland and the UK—has meant the spring has failed to launch. While warmer conditions are forecast and could fire up pasture growth a spring delayed is a peak flattened— shoulder production is unlikely to make up for any shortfall. In the US milk growth continues to be constrained by reduced cow numbers.
Meanwhile, China imported 8% less dairy product in the first quarter of 2024, measured on a milk solids equivalent basis. The China-shaped hole left in demand explains why milk production declines aren’t enough to significantly boost dairy commodity prices. This week’s Pulse paint the picture for ingredients demand with further slippage in WMP and SMP prices.
This week’s highlights include:
- Australia’s cattle market steadies
- New Zealand milk production falls
- China imports remain low
- US March milk down 1%
- EU-27 milk just below flat in February
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