World milk market: New Zealand increases milk production amid global shortage of raw materials

In August 2024, milk production in Western Europe, particularly Germany, France, and the Netherlands, decreased due to hot weather, while Eastern Europe saw a slowdown by the end of the month. The EU experienced an overall increase in milk production in the first half of 2024 but expects a decline in July-August. The US saw a slight increase in July 2024 but faced a decline in August due to extreme heat and logistical issues from Hurricane Ernesto. New Zealand's milk production rose significantly in July 2024, with expectations of further increases. Global demand for high-protein and high-fat dairy products is projected to grow, although the Chinese market remains uncertain due to rising production costs and increased domestic production. In July 2024, Australia's raw milk production was 579.4 thousand tons, a 3% decrease from June but a 1% increase from the previous year. Despite increased rainfall, high feed prices due to strong demand persist. Weather and economic challenges are expected to slightly reduce milk production in the 2024-2025 season. High milk prices have led to increased dairy imports and reduced international sales of Australian dairy products. Farmgate milk prices for the 2024-2025 season have dropped by around 15% due to competition from imports, pressuring raw milk producers facing rising production costs.

Production and demand Europe. According to the USDA, in August in the countries of Western Europe, in particular in Germany, France, and the Netherlands, a decrease in milk yield was observed under the influence of hot weather. Even in the countries of Eastern Europe, which showed an increase in milk production in the first half of the month, the production of raw milk began to slow down at the end of August. In the first half of 2024, milk production increased in EU member states, but market participants expect a decline in milk volumes in July-August. An outbreak of catarrhal fever in cows in the border areas of both countries became a challenge for farmers in France and Belgium. USA. According to clal. it, in July 2024, American farmers produced 8.58 million tons of raw milk, which is only 0.8% more compared to June of the current year and 0.8% less compared to July 2023. According to the USDA, raw milk production declined in most regions of the United States in August due to ...