A mixed outlook – modest output growth, but moderating prices
Global milk output growth has continued to moderate into July, indicative most of all of the impact of drought and heatwaves in Europe. More modest US growth (+0.4%) also played a part, and a drop in Australian production for July (down 4.2%). Fodder is short and feed expensive in Australia due to unfavourable weather factors.
Meanwhile, July New Zealand output was well up (+4.5%). July is the first month of the new season, and the outlook is expected to be for strong continued output over the coming months, with a strong pasture growth index at a 5-year high. NZ production is due to peak in October, which is only next month.