Milk, Dairy and Grain Market Commentary By Sarina Sharp, Daily Dairy Report
Global milk output is slowing, supporting dairy product values all around the world. Foreign prices for butter, milk powder, cheese, and whey have been climbing for months, and they continue to rise. In recent weeks, gains have accelerated, as milk production shortfalls move to the fore. In Australia and New Zealand, the peak of the season has passed and milk output continues to disappoint. Through October, Aussie milk production is down 2.9% for the season to date. In New Zealand, June through October milk collections lag last year by 3.4%. Australian milk output is expected to improve. In New Zealand, November milk output also likely fell short of last year, and it will be difficult to make up for lower peak season milk output as production gradually fades in the coming months.
In Europe, a few countries have yet to publish milk output data for October, but the yearover-year deficit is widening in the nations that have reported. October collections in Europe’s seven largest dairy countries fell 1.1% below yearago volumes, the steepest decline since January 2017, when some governments paid producers to restrict output.