Rising prices for milk and dairy products in 2024 now appear to be driving an increase in global milk production, writes Niels Ole Nielsen, senior consultant at L&F, in Landbrugsavisen.

In recent months, global milk production has begun to rise for the first time in a year and a half, according to Niels Ole Nielsen’s analysis in Landbrugsavisen.

The total milk production in September and October was about one percent higher than last year. This is the first time this year that production has simultaneously increased both within and outside the EU. Nielsen highlights that the rise is primarily due to increased production outside the EU after August, particularly in countries like the United States and New Zealand. Additionally, milk production has stabilized in several South American countries that experienced a steep decline in the spring. Within the EU, production has been increasing for most of the year, though there was a dip after the summer due to fluctuating weather conditions and the bluetongue virus, he explains.

Niels Ole Nielsen also notes that global demand for dairy products has been rising for some time. With production lagging behind, this has led to significant increases in market prices within the EU over the past year: butter prices have risen by 65 percent, whole milk powder by 35 percent, and skimmed milk powder and cheese by 25–30 percent.

Read the full article HERE (subscribers only)

Photo: Zhao Yangjun, Unsplash