FAO: Global milk production surged to 965.7 million tonnes in 2023
Source: The DairyNews
The UN Food and Agriculture Organisation (FAO) has unveiled its Dairy Market Review for 2023, providing insights into the dynamics shaping the international dairy industry.
Price Weakness and Trade Contraction
The review reveals a significant weakening of international dairy prices throughout 2023, accompanied by a contraction in global milk trade for the second consecutive year. Factors contributing to this decline include reduced imports by key dairy importers, such as China, particularly for whole milk powder (WMP), and subdued demand from the foodservice sector despite the easing of Covid-related restrictions.
Drivers of Decline
High stocks, domestic availability of milk powders, and lower purchasing power in regions like the Middle East further contributed to the decline in dairy trade. Additionally, increased milk deliveries in the EU exerted downward pressure on international prices, as reported by the FAO.
Price Rebound and Internal Demand
However, the review notes a price increase since October, attributed to tight export availabilities from major exporting regions like North America, Western Europe, and Oceania. Moreover, some Western European countries witnessed strong internal demand for milk products, bolstering prices.
Global Milk Production
Global milk production surged to 965.7 million tonnes in 2023, reflecting a 1.5% increase from the previous year. The growth was primarily driven by volume expansion in Asia, which now accounts for 46% of total global milk output. Notably, India and China emerged as key contributors to the growth, with India experiencing a 2.5% volume increase and China witnessing a substantial 6.6% rise, fueled by supportive government policies and higher prices to farmers.
Regional Variations
While Asia experienced overall growth, some countries, including Japan, South Korea, the Syrian Arab Republic, Iraq, and Thailand, reported notable declines in milk production. In Europe, milk output increased slightly by 0.3%, with Russia, the EU, and Belarus contributing to the growth, while Ukraine and Norway recorded declines.
The FAO's Dairy Market Review underscores the complex interplay of factors influencing global dairy markets and highlights both challenges and opportunities facing the industry.
The review reveals a significant weakening of international dairy prices throughout 2023, accompanied by a contraction in global milk trade for the second consecutive year. Factors contributing to this decline include reduced imports by key dairy importers, such as China, particularly for whole milk powder (WMP), and subdued demand from the foodservice sector despite the easing of Covid-related restrictions.
Drivers of Decline
High stocks, domestic availability of milk powders, and lower purchasing power in regions like the Middle East further contributed to the decline in dairy trade. Additionally, increased milk deliveries in the EU exerted downward pressure on international prices, as reported by the FAO.
Price Rebound and Internal Demand
However, the review notes a price increase since October, attributed to tight export availabilities from major exporting regions like North America, Western Europe, and Oceania. Moreover, some Western European countries witnessed strong internal demand for milk products, bolstering prices.
Global Milk Production
Global milk production surged to 965.7 million tonnes in 2023, reflecting a 1.5% increase from the previous year. The growth was primarily driven by volume expansion in Asia, which now accounts for 46% of total global milk output. Notably, India and China emerged as key contributors to the growth, with India experiencing a 2.5% volume increase and China witnessing a substantial 6.6% rise, fueled by supportive government policies and higher prices to farmers.
Regional Variations
While Asia experienced overall growth, some countries, including Japan, South Korea, the Syrian Arab Republic, Iraq, and Thailand, reported notable declines in milk production. In Europe, milk output increased slightly by 0.3%, with Russia, the EU, and Belarus contributing to the growth, while Ukraine and Norway recorded declines.
The FAO's Dairy Market Review underscores the complex interplay of factors influencing global dairy markets and highlights both challenges and opportunities facing the industry.
23.09.2024
Carbon emissions in global milk production - the elephant in the room
I have been thinking to make this post yes/ no. I decided for yes and like to ask everyone to not "shoot the messenger". The chart shows an analysis of IFCN Dairy Research Network from the 2024 supporter conference in Poland.
