Higher feed values hit dairy farmers
- amy55735
- Jan 31
- 1 min read
KANSAS CITY — Global milk production costs have risen significantly over the past five years, and higher feed prices bear much of the blame, according to a recent report.
From 2019 to 2024, the total cost of milk production increased by an average of 14% across the world’s eight top-producing dairy regions: California, the Upper Midwest, Argentina, Australia, China, Ireland, New Zealand and the Netherlands, as noted by RaboResearch in a January survey. More than 70% of that increase happened since 2021 as a result of higher feed and fertilizer costs, more expensive transportation, the Russia-Ukraine war, weather patterns in key dairy regions, global trade and supply chain disruptions and other factors. Migrant labor shortages and higher interest rates also played a role, the report’s authors noted.
“Feed expenses have been the largest culprit in cost increases, with average feed bills across the eight regions rising by 19% from 2019 to 2024,” Emma Higgins, senior agriculture analyst with RaboResearch, wrote in the report.
01.30.2025
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