Global Dairy Market Seeks Balance

Global economic challenges, trade disputes, and production hurdles may compel dairy market operators to gradually re-evaluate their activities in the second half of 2025. Dairy fat prices have hit record highs since last autumn, but Rabobank warns that growing dairy product supply and unstable demand could destabilize the market.

Global Dairy Market: Milk Production Declining

In April, milk production volumes decreased in the EU, the USA, and Oceania. The decline in milk yield was influenced by a reduction in cow herds due to diseases and the negative impact of drought on cow health, pastures, harvests, and water supply. According to FAO, in 2024, global milk production reached 982 million tonnes, an increase of 1.4% compared to 2023. This growth was ensured by a significant increase in production volumes in most regions of the world, which offset the decline in milk yield in Africa and North America.

The Global Dairy Market Has Entered a Period of Calm

According to Rabobank, in the second half of 2024, the supply of raw milk improved in regions exporting dairy products amid declining demand from dairy processing enterprises during the traditional slowdown in purchasing activity on the global dairy market during the New Year holidays.

Between proficit and deficit: an overview of the global dairy market

Despite the decrease in prices for milk raw materials in Europe, too much export supply for dairy products and weak demand on foreign markets, attractive niches for producers and exporters still remain in some countries.

Milk market overview in Ukraine and the world

The World Milk Crisis 2020 - what are the scenarios for future events?