A sharp increase in milk production across the European Union, United States, and New Zealand is exerting significant downward pressure on commodity dairy prices. With supply now outpacing demand—amid weakening domestic consumption and slow export growth—market fundamentals are shifting toward bearish sentiment. The EU faces easing supply constraints but afternoon droughts threaten feed stocks. In the U.S., surging milk and cheese output exacerbates inventory build-up. Similarly, New Zealand anticipates increased volumes ahead of its new season. In contrast, Australia grapples with feed shortages and rising hay prices, which may limit production by approximately 2% in 2025–26. The entangled dynamics of supply surplus and global trade complexity continue to cloud market outlooks.
Industry Insight:
Dairy stakeholders should prepare for continued price volatility—prioritizing cost-efficiency, diversifying markets, and managing inventories to navigate an oversupplied global environment.
Source : DAirynews7x7 Aug 18th 2025 Read full story here