Global Milk Glut Cuts Fonterra Price Outlook
A global milk surplus is putting pressure on dairy commodity prices, prompting New Zealand dairy cooperative Fonterra to reduce its 2026/27 Farmgate Milk Price forecast. Since May 2026, Global Dairy Trade (GDT) prices for Fonterra’s reference products have fallen by 11%, leading the cooperative to lower its forecast by NZ$0.50 to NZ$9.25 per kgMS, with…
Heatwaves Cut GB Milk Output, Lift Dairy Prices
Great Britain’s dairy sector is experiencing the impact of extreme summer weather, with recent heatwaves significantly reducing milk production and temporarily shifting the market from oversupply to undersupply. According to analysis by the Agriculture and Horticulture Development Board (AHDB), GB milk production is estimated to be down by 18.5 million litres following a series of…
U.S. Ice Cream Output Jumps Despite Heat Stress
The U.S. dairy sector is witnessing contrasting market signals as regular hard ice cream production climbed to 69.2 million gallons in May 2026, up 7.1% year-on-year and 4.0% higher than April 2026, driven by strong seasonal demand. However, an intense heat dome across key dairy-producing regions is reducing milk output, tightening cream supplies and adding…
Global Dairy Trade Growth Driven by Cheese: Rabobank
Global dairy trade is continuing its long-term expansion, growing at an average rate of 2% annually, with cheese emerging as the primary driver of trade growth, according to Rabobank’s World Dairy Map 2026. The report projects global dairy trade to reach 101.2 billion kilograms of liquid milk equivalent (LME) in 2025, representing an 11% increase…
FAO Food Price Index Eases as Dairy Prices Decline
The FAO Food Price Index (FFPI) averaged 130.3 points in June 2026, down 0.3% from May, as lower prices for cereals, sugar and dairy products outweighed increases in vegetable oils and meat, according to the Food and Agriculture Organization (FAO). Despite the monthly decline, the index remained 1.7% higher than June 2025 and 18.7% below…
Growing Milk Supplies Weigh on Global Dairy Markets
Abundant milk production is placing downward pressure on global dairy prices, with analysts warning that expanding supplies could keep markets bearish in the months ahead. According to the latest USDA Milk Production Report, May 2026 milk production in the top 24 U.S. dairy states rose 2.4% year-on-year to 19.8 billion pounds, while average production reached…
US Dairy Heifer Shortage Raises Supply Concerns
The US dairy industry is facing a growing replacement heifer shortage, raising concerns about future milk supply growth despite current record milk production levels. Recent industry reports indicate that dairy heifer inventories have fallen to historically low levels, with replacement heifers expected to calve totaling approximately 2.5 million head—the lowest since USDA began tracking the…
Global Dairy Supply Growth Begins to Slow
Global dairy markets are approaching a potential turning point as milk supply growth slows across major exporting regions while rising input costs continue to pressure farm margins. Recent market analysis indicates that after several quarters of strong expansion, global milk production growth is beginning to moderate, with supplies expected to flatten during the second half…
FAO Says Global Food Prices Stable in May
Global food prices remained largely stable in May 2026, with the FAO Food Price Index (FPI) averaging 130.8 points, down just 0.2 points (0.2%) from the revised April level, according to the Food and Agriculture Organization (FAO). Despite the slight monthly decline, the index remained 2.9% higher than a year ago and continued to hover…
Class IV Surges as Milk Price Gap Hits 6-Year High
The U.S. dairy market witnessed a significant shift in May 2026 as the gap between Federal Milk Marketing Order (FMMO) Class III and Class IV milk prices widened to $5.40 per hundredweight (cwt), the largest spread since 2020. The development has renewed incentives for depooling within FMMOs, with Class IV milk emerging as the higher-valued…