Category: News

Production: In the US, NFDM production continues to ramp up seasonally, rising by 3.5% from February to March, besting the MoM five-year average. However, output still fell short of prior year levels in March. In the EU, production figures were neutral to weak compared to 2024, with stocks still on the lower end compared to the past 5 years. Oceania is assumed to have somewhat lower SMP production from NZ compared to last year.

Demand: US March exports were surprisingly strong as the US regained market share in SE Asia quite fast, totaling 64.8k MT for March. EU exports were neutral in March at 71.3k MT, where weak demand in North Africa was eased by stronger demand in SE Asia. NZ exports were strong again in March at 41.8k MT.

Growth is expected in the USA with more cows, good margins, and strong solids. In contrast, the European continent struggles despite good margins, facing issues with fewer cows and risks from Blue Tongue and FMD, though solids remain strong. The UK is performing very well, which, together with stronger solids, eases the struggles on the continent. In New Zealand, the season is closing, and cows could be rested sooner than normal, but things for the upcoming season look okay. A decline is expected in Australia due to fewer cows on smaller farms and low margins. Meanwhile, growth is expected in Belarus, Turkey, and South America.

Welcome to the latest edition of our newsletter – packed with insights and updates from across the dairy world. We begin with ‘Market Direction’, where we explore the latest trends shaping global milk production. In this issue’s ‘Deep Dive’, we take a closer look at the contrasting dynamics of skimmed milk and butter, and what they signal for the market. Our ‘Quick Note’ section brings you sharp takes on US whey, the US-China tariff impact, and a focused piece on CME Futures by Neil Hunt, Derivative Trader at HTM. In ‘World Comment’, we hear from Danny Prangsma, Senior Account Manager at Dairy Essentials Europe, who shares his perspective on the evolving European landscape. Finally, we celebrate a milestone in ‘Hoogwegt Happenings’ with the successful completion of our annual Skal Organic certification—a testament to our commitment to quality and sustainability.