Global Market Updates
Milk from Australian dairy farms are made into products that are sold locally and in countries around the world. Understanding what is happening in all these markets will provide an insight to important trends that strongly influence Southern Region farmgate milk prices. Keep up to date with the latest global dairy market developments
EU-27 February milk down 0.2%
EU-27 supplies fell 0.2% YOY leap-year adjusted in February, based on 25 member countries having reported milk production data to Eurostat (Sweden and Luxembourg not included). The near flat result was driven by an 8.1% YOY increase in Ireland and 6.3% YOY rise in...
EU-27 SMP exports weaker at the start of the year
SMP exports fell 5.3% YOY in February 2021 to 66,809t, which was a six-month high. This followed a 1.3% YOY decline in January. There were mixed trends across major destinations in February, with a 2.8% YOY increase in sales to SE Asia not enough to offset negative...
Another quiet GDT
The GDT index slipped just 0.1% as this event saw little change but AMF being the worst affected by pushback against high prices. SMP slipped by US$2/t to average US$3,365/t, with the biggest fall in C5 and an US$80/t lift in C6. The Fonterra MH C2 product posted a...
EU February milk supply figures mixed
Based on 51% reported average Eurostat milk production, leap-year adjusted EU-27 supplies rose 1% YOY in February. This expansion was the result of stronger supplies in Ireland (+8.1% YOY) and Italy (+6.3% YOY), and despite negative trends in Netherlands (-1.9% YOY),...
US February exports stronger than expected
US dairy exports were surprisingly high in February, accounting for 17.5% of national milk supply, which was a 9-month high. This was despite the well-known issues with logistics and shipping delays. Dairy export value rose 7% YOY to US$565.5m while in MSE terms...
EU-27 milk to grow 1% in 2021
The European Commission’s (EC) Spring 2021 Short-term outlook projects EU-27 milk deliveries to increase 1% YOY this year to 146.8bn kg, the result of a 2% YOY increase in average yield per cow and despite a 0.9% YOY contraction in dairy cow numbers. The growth in...
GDT fizzles
After a few weeks of not much happening in global dairy markets, we came back from the festival of chocolate to a GDT event where not much happened. The overall GDT index edged up 0.3% at event 281. SMP inched higher by 0.5% or US$17/t to average US$3,367/t, with the...
EU milk value crawls up to 36c
German-based IFE Institute’s estimated average EU raw milk value is up 0.3c to 35.9c/kg at the based on official prices of butter and SMP in Germany, France and the Netherlands. The average price of butter is up €63 to €4,147/t while SMP averaged €2,502/t, up €8....
January trade dropped sharply
According to our latest monthly Global Dairy Directions Trade Insights , January global trade fell 7.2% YOY in milk solids equivalent (MSE) terms, taking trade in the three months to January down 0.8%. Two-way trade between the EU-27 and UK explained most of the...
US milk production up 2% in February
US milk production expanded 2% in February – leap year adjusted - according to the USDA. The milking herd continued to expand reaching 9.458m cows, a gain of 3,000 head from the previous month and 81,000 higher YOY. That month-on-month growth in cow numbers was lowest...