Milk in key exporting regions
%-change versus previous year
Europe
Wide spread of spot milk prices in the EU
Spot milk prices are diverging in the West of the EU. French milk is very competitive at EUR 0.41/kg while prices in the Benelux and Germany are around EUR 0.58/kg with limited offers. Italy is willing to pay EUR 0.67 as demand is strong but expensive logistics complicate transactions. Southern EU is also in the market for skimmed concentrate at prices of around €2.25/kg. Cream prices have taken a bit of a hit but the current price of EUR 8.50/kg is still too high for butter manufacturing.
Americas
US milk production still has to overcome some challenges in order to reach higher growth rates
US milk production grows at monthly increasing rates. California’s underperformance and heifer replacement challenges prevent higher growth rates at the moment. If weather conditions are normal throughout the summer weeks and Avian Flu and other diseases will not disrupt production then growth rates are expected to increase further towards the end of the year.
Asia-Pacific
All conditions seem to be in place to have a favorable start of the new season
Oceania appears to be heading for a favorable start of the new season. The recent GDT results may cast a bit of a shadow on the financial side of things, but the outlook for production circumstances at the start of the new season is very favorable. Weather can still spoil the party in August and September, but other than that, all conditions seem to be in place to have a positive start of the new Oceania season.
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