Out now: Q3 2024 Dairy Market Insights Report

Record-high European butterfat prices have driven global dairy market trends, the third quarter 2024 Dairy Market Insights report has found.

However, the report identified, tight supply conditions are expected to ease with increased production and potential consumer resistance to high prices.

The report (to September 2024) is now available on our Milk Value Portal (MVP), providing a summary of the national and global factors shaping the state of the industry.

Key factors identified include:

• Record-high European butterfat prices have driven global dairy market trends for much of 2024, though these tight supply conditions are expected to ease with increased production and potential consumer resistance to high prices.
• A strong start to New Zealand’s dairy season raises the possibility of increased butterfat availability, which could help reduce global fat prices.
• Oceania butterfat is trading at a significant discount compared to northern hemisphere prices, while New Zealand’s abundant supply of skim milk powder (SMP) has kept prices stable.
• Australia has significantly increased its cheese and SMP exports in 2024 due to abundant local supplies and is competing in hotly contested global markets.
• Ongoing dry conditions in western Victoria are negatively impacting production, driving up demand and prices for fodder in the region.

To access the latest Dairy Market Insights report, please visit the Milk Value Portal.