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

US milk down 1% in April

US milk down 1% in April

Milk production declined for the sixth consecutive month in April – down 1% YOY according to the USDA. The contraction was relatively stronger when compared to the 0.4% YOY decline in March. The overall decline in April was a result of a 1% YOY decline in cow numbers...

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US milk down 1% in April

EU-27 exports weaker in March

EU-27 exports were lower in March across the major product categories we track, with the exception of infant formula, MPC and WPC80. At 58,310t, SMP exports were down 23.6% YOY but this was the highest monthly volume since November last year, reflecting weaker...

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US milk down 1% in April

NZ April milk falls

April milk production fell for the 9th consecutive month, with output down 5.2% YOY on a milk solids basis and 5.6% YOY on a tonnage basis. Season to date production is tracking 3.9% behind the prior season on a milk solids basis and 4.1% on a tonnage basis. Despite...

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US milk down 1% in April

EU milk supplies remain tight

EU-27 milk supplies fell an estimated 0.4% YOY in March 2022. Declines in France (-1.2% YOY), Ireland (-3.3% YOY) and the Netherlands (-2.5% YOY) more than offset increases in Poland (+1.8% YOY), Italy (+2.9% YOY) and Denmark (+0.6% YOY). The estimate is based on 64%...

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USDA raises milk growth forecast

USDA raises milk growth forecast

In its May WASDE report, the USDA milk production forecast for 2022 was increased by 0.2% from the previous month, reflecting a larger dairy herd more than offsetting lower average milk per cow. Milk output is now expected to grow 0.2% YOY to 102.8bn kgs in 2022 after...

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GDT #308 provides a mixed result

GDT #308 provides a mixed result

The event index fell 2.9%, the 5th decline in succession, but that measure was weaker due to softer butterfat and the heavier volumes of Instant WMP which produced a crash in C2 prices. Otherwise there was a rise in regular WMP while SMP was essentially flat on...

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US milk down 1% in April

US March cheese exports record high

US dairy exports surged in March, accounting for 18% of national milk production – a 10-month high. US cheese exports rose 12.9% YOY in March to 41,925t, the highest monthly volume on record in our database which starts in January 2010. In YOY terms, shipments have...

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Fonterra New Zealand cuts price range

Fonterra New Zealand cuts price range

Fonterra has revised its forecast farmgate milk price range to a range of NZ$9.10kgMS – NZ$9.50kgMS, down from NZ$9.30kgMS – NZ$9.90kgMS. Fonterra said the milk price revision is due to a number of recent events that have resulted in short-term impact on global demand...

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US milk down 1% in April

EU milk supplies remain tight

EU-27 milk supplies remain tight in March according to Eurostat data. Irish production fell 3.3% YOY to 826m kgs, but on a particularly large prior-year comparable. That decline followed YOY increases in both January and February. The Netherlands is the only other...

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GDT #308 provides a mixed result

GDT slumps as weak Chinese demand keeps buyers away

GDT event 307 produced a large fall in prices across the board as the fears of the effects of protracted COVID restrictions in China kept buyers on the sidelines. SMP fell 6.3% or $278t on average to $4,130/t. Fonterra MH C2 lost $225/t to $4,185/t, but the forward...

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