Milk in key exporting regions
%-change versus previous year
Europe
Cool summer weather in July boosts milk availability
The June numbers in the milk production graph are still not impressive but more recent weekly numbers and anecdotal comments indicate that EU milk production in July yielded much stronger growth rates. Cool weather and shifting calving patterns due to last year’s Bluetongue disease boosted milk availability in recent weeks and prices of liquids started to come down a little. Spot milk prices in Germany have come down to EUR 0.45/kg, in France to EUR 0.42/kg and in the Netherlands to EUR 0.52/kg. Cream prices have declined to EUR 7.90/kg which allows for butter production and skimmed concentrate is also nearly low enough for commodity production at EUR 2/kg.
Americas
Milk production growth takes a big step up
The 3.3% June increase for US milk production is partly driven by those states where new capacity was added in recent years, but the biggest contribution was California going from -0.4% in May to +2.7% in June. Milk prices are still far from the high levels that EU farmers are getting but the low cost of feed obviously helps. With this level of milk production growth, sluggish domestic demand and Mexico currently also temporarily out of the market, more and more US milk will find its way to export markets.
Asia-Pacific
Oceania prepares for stiff competition in export markets in H2 of 2025
Milk output volumes are still hardly relevant at the moment in Oceania but circumstances look favorable for a solid start of the new season. Most buyers in China and Asia that have a preference for New Zealand product and that are as yet uncovered for Q4 are eagerly anticipating the new season, but in other export markets New Zealand will most likely get exposed to stiff competition coming from the US and Latin America.
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