IFCN predicts an increase in world milk prices

According to Sophia Iordanido, associate economist at IFCN, over the past month, global milk prices have increased by 2.3% to $37.2/100 kg of milk produced. As the expert explains, the growth is caused by the following factors: rising prices for milk powder (whole and skim), a decrease in milk supplies and an increase in demand for milk.

Also, according to IFCN estimates, by the end of the year, milk prices in the world will increase from 45 to 49 US dollars. According to other analysts, the world milk price by the end of the year will be between 38 and 43 US dollars. According to Sophia Iordanido, this is due to weakening domestic demand in the main exporting regions.

“ Global milk production is slowing, especially in major dairy exporters. For example, in the US this is happening as farmers there face environmental and economic problems, and in the EU there is also low growth in milk production. Even in New Zealand, milk supply is lower than in 2021 and 2022. This reduction in the supply of milk in the world market is an explanation for the high price we are currently seeing. But this, of course, is only one piece of the puzzle. It is important for us to remember that the United States can recover again. Additionally, it is still unclear whether strong demand in China will continue and whether other key regions will remain cautious about future purchases. Therefore, it is interesting to see future trends ,” the expert concluded.