Overall, dairy markets so far in 2024 have been tending towards slight undersupply due to weaker underlying market fundamentals. Disappointing Chinese import demand contributed to overall lack of movement on the demand side and lower prices than the previous year. Although prices have been rising again, producing some margin improvements, input costs remain at much higher levels than previously.
In the first half of 2024 (to June 2024) every region except for Australia and the EU have seen decline. Even the EU only grew by a modest 0.6%, whilst Australian milk supplies grew by 3.8%, annualising against a weaker 2023. However, total production for the year ahead is expecting to be overall more stable in the key exporting regions.
Australia (2.0%), US (0.2%) and EU (0.4%) are expecting to end the year with slight growth with the UK (-0.7%) and New Zealand (-0.7%) expecting to be in moderate decline. Argentina continues to expect more severe declines (-7.4%) in response to the challenging economic conditions seen in the country, although less severe than the declines we have been seeing.
Wednesday, 7 August 2024
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