Europe

Global Demand Lifts U.S. Dairy Exports to Near-Record Levels

Tue, 03 Mar 2026 15:05:04 GMT

Every week, dairy news articles circle the impact of the growing milk production in the United States and what factors could possibly help support prices despite the looming supply. The one bright spot helping to elevate the massive supply issue is the extreme growth in exports we’ve seen over the last few years.

In 2025, the United States approached near record export values at a whopping $9.51 billion in dairy products exported. Second to 2022 in dollars of products shipped to other countries. That equates to a 15% increase year over year from 2024 in dollars and 5% more in total volume of dairy products exported.

Currently, the U.S. sells to 143 countries which saw the biggest increase in demand from a wide range of buyers in the Middle East, South Asia, North Africa and South America. We are third largest exporter of dairy products in the world.

In 2025, the U.S. saw a huge increase in butter and milk fat shipments, up over 165% from 2024. Whole milk powder also saw a massive increase, coming in 56% higher than 2024. Cheese and butter product demand is strong both domestically and abroad.

Globally, milk supply is plentiful with the U.S., New Zealand, and the European Union increasing steady. It can be seen when comparing prices as the World Milk Price which has been falling since early last June.

With supply being plentiful and exports strong, the world has all eyes on the conflict in the Middle East. Over the weekend, tensions between Iran and the United States led to strikes on U.S. bases in Bahrain and buildings in Dubai. While not a direct impact to the dairy industry, the tensions can be felt throughout.

For shipments, insurance and freight costs will be a factor, especially near the Strait of Hormuz. Most cargos will see increased cost with the added risk as well as some energy cost spikes, given the impact on crude oil. Insurance companies either drop coverage or increase prices enough to discourage travel through those areas as we saw with the Russian/Ukrainian war. Bottlenecks in logistics may also be a factor going forward.

As far as changes that will directly affect dairy, it is too soon to tell but something the United States, EU and New Zealand are keeping a close eye on. Butter so far has not factored in a risk to demand as Monday trade was higher on the day. Volatility is to be expected whether it comes directly in the futures markets for dairy products or indirectly from the impact seen on the stock market. This can create marketing opportunities, especially in the deferred months which have surpassed the $18 mark in Class III Milk futures for June and beyond.

Sarah Jungman is a commodity broker with AgMarket.Net and AgDairy, the dairy division of John Stewart & Associates Inc. (JSA). JSA is a full-service commodity brokerage firm based out of St. Joseph, MO. Sarah’s office is located in Winterset, Iowa and she may be reached at 515-272-5799 or through the website www.agmarket.net .

The thoughts expressed and the basic data from which they are drawn are believed to be reliable but cannot be guaranteed. Any opinions expressed herein are subject to change without notice. Hypothetical or simulated performance results have certain inherent limitations. Simulated results do not represent actual trading. Simulated trading programs are subject to the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. There is risk of loss in trading commodity futures and options on futures. It may not be suitable for everyone. This material has been prepared by an employee or agent of JSA and is in the nature of a solicitation. By accepting this communication, you acknowledge and agree that you are not, and will not rely solely on this communication for making trading decisions.

U.S. Dairy Exports Surge to $9.51 Billion in 2025

Fri, 20 Feb 2026 17:50:01 GMT

The U.S. dairy industry closed 2025 just shy of an all-time export record, signaling strong global demand and growing diversification across international markets.

According to calendar year 2025 data released by USDA, U.S. dairy exports reached $9.51 billion, narrowly missing the record $9.54 billion set in 2022. That total is up 15% from 2024, showing how U.S. dairy continues to gain ground in global markets.

In addition to higher value, export volumes also increased. According to the International Dairy Foods Association (IDFA), U.S. dairy exports totaled 2.8 million metric tons in 2025, up 5% from the previous year. Growth was driven largely by expanding demand in the Middle East, North Africa, South Asia and South America, regions that are playing an increasing role in strengthening and diversifying U.S. dairy exports.

“This near-record year demonstrates that U.S. dairy exporters are succeeding in diversifying both markets and product portfolios,” says Michael Dykes, IDFA president and CEO. “Growth across North Africa, South Asia, the Middle East, South America and the European Union reflects a deliberate strategy to reduce concentration risk, deepen customer relationships and compete in emerging and established markets alike. Today, U.S. dairy exports reach 143 countries, and our product mix spans consumer-ready foods, high-value ingredients and specialized nutrition products — a level of diversification that strengthens long-term export resilience.”

Regional Growth Highlights

Export growth in 2025 was broad-based, with several regions posting double- and even triple-digit gains. The following breakdown from IDFA highlights how U.S. dairy exports performed by region:

North Africa — Exports surged 107% by value and 69% by volume, reflecting accelerating demand across the region.
Middle East — Exports grew 48% by value and 19% by volume, driven largely by processed cheese, sweetened milk powder, whey protein powder and concentrate, lactose and natural milk products.
South Asia — Exports grew 63% by value and 25% by volume, led by strong growth in India, Pakistan and Sri Lanka. U.S. dairy exports to India alone increased 71% by value and 31% by volume.
South America — Exports grew 14% by value and 7% by volume.
Central America — Exports grew 19% by value and 13% by volume.
North America — Exports grew 6% by value and 2% by volume.
East Asia — Exports grew 14% by value and 2% by volume.
European Union — Exports increased 61% by value and 69% by volume.
Sub-Saharan Africa — Exports grew 9% by value.

Higher-Fat Products Help Drive Momentum

Demand for higher-fat dairy products saw a sharp increase in 2025, contributing to overall growth in U.S. dairy exports. Global export volumes rose by approximately 165% for butter and milk fat and by 56% for whole milk powders, reflecting shifts in global purchasing patterns and increased use of these products in both consumer foods and food manufacturing.

Several other categories also posted solid gains. Dairy spreads, whey protein concentrates and cheese were among the stronger-performing products, indicating continued demand for both value-added ingredients and consumer-ready dairy products across a range of markets.

Combined with broader regional growth, higher export volumes and near-record export value, U.S. dairy continues to expand its role in international markets.

“Looking ahead, our industry is poised for even greater growth,” Dykes says. “A renewed trade agenda that expands market access, strengthens enforcement and opens new opportunities in Southeast Asia, Latin America, North Africa and the Middle East will allow U.S. dairy exporters to compete and win in markets around the globe.”

With momentum already built in 2025, the outlook for 2026 points toward continued export gains fueled by expanding opportunities.

How Farmer Protests Across Europe Played a Role in the Recent EU Elections

Thu, 13 Jun 2024 20:59:23 GMT

Farmer protests across Europe are heating up again leading up to the elections in Europe, and the outcome of the European Parliament elections over the weekend sent a clear message. One agricultural economist says it’s not just frustrations from farmers that fueled the election results. It’s also EU voters who are worried about the cost of environmental reforms.

The issue has been brewing for the past year, with farmer protests showing the frustration.

“Things have been slowly coming to the boil over the last 12 months or so. But really, the origins of all this are traceable back to when the last European Commission came into place, which was in 2019,” says Trevor Donnellan, who is the head of economics at the Rural Economy Research Centre based in Ireland.

After the 2019 election, and the Green Party become more dominant, the push to fast-track climate policies and regulation was swift.

“European environmental policy around agriculture is significant. That’s the first thing people in the us need to understand, and it is becoming more significant,” he says. Regulation around things like greenhouse gas emissions is becoming an issue regulation around water quality, the usage of fertilizers, what we do with animal waste, these are all becoming more serious issues.”

Related Story: Why Farmers Are Protesting In Europe

In Donnellan’s own country of Ireland, agriculture is required to reduce greenhouse gas emissions by 25 percent by 2030. He says for a country that has a large dairy and beef production footprint, that could require farmers to reduce their herd size to reach such a lofty goal.

In the Netherlands, environmental policy has already forced livestock producers to get rid of animals, even pushing some farmers out of business.

Those increased regulations are what propelled farmer protests over the past year. The scene drew international attention with farmers using tractors to block traffic on major highways across Europe, to even protesting outside the parliament, and it’s those protests that sent a loud message ahead of the elections.

“The protests, I think, have been significant in making politicians and the general public aware of the importance of taking into account the farmer perspective in setting all these regulations,” says Donnellan.

Related Story: Exploring the Root Causes of Global Farmer Protests Against Ag Policies

That message was apparently on the minds of voters this past weekend as the 27-nation bloc’s parliament membership shifted to the right. The surge by Nationalist and Populist parties will make it much harder for the assembly to approve legislation on issues ranging from climate change to agriculture policy.

“When we look at it in terms of what it might mean, for agriculture, the kind of political perspective in this new parliament has moved a little bit further to the right, which probably is a little bit more aligned with the interests of farmers. And farming is very important. In the context of the European Union, it’s one of the reasons why the European Union was created in the first place,” Donnellan explains.

He says that could mean less of an emphasis on green issues than what the EU has seen dominate policy the past 5 year.

“Looking at it from an agricultural point of view, it could mean that the pace of change in terms of pushing the environmental regulation could maybe slow down a little bit, or there might be a little bit of a rethink on some aspects of it. But it’s probably a parliament that might be a little bit more sympathetic to the concerns of farmers than the one that has just come to an end,” he adds.

Related Story: Will Europe’s Farmer Protests Make Their Way To The U.S.?

While it’s not clear exactly what will happen with EU climate policy in the years ahead, Donnellan says what’s happening in Europe is setting an example for the rest of the world.

“That might sound a little bit grand, but that’s kind of the thinking behind this politically in that Europe will demonstrate to the rest of the world what’s achievable in terms of having an more environmentally compliant economy, including in agriculture, and that the rest of the world should potentially follow suit from a policy perspective in the future,” he says.

EU Milk Collections Could be Stabilizing

Mon, 06 May 2024 20:37:50 GMT

Farmer protests in the European Union, one of the world’s largest exporter of dairy products, have moderated just as the EU milk supply appears to be stabilizing in parts of the continent. EU-27 milk collections fell a slight 0.1% in February, marking the sixth straight month of year-over-year shortfalls, according to preliminary data from Eurostat and CLAL.it However, the gap between this year and last has started to narrow, according to Sarina Sharp, analyst with the Daily Dairy Report.

Milk production was down 0.3% in top-ranked Germany, but weekly data suggests that milk output there climbed back above year-ago levels in March and April, Sharp noted. And a mild February allowed for 0.5% year-over-year production growth in France.

“Extremely wet weather in February weighed heavily on milk yields in northern Europe,” said Sharp. Output dropped 2.3% in the Netherlands, the European Union’s third-largest milkshed, while Ireland’s production plunged 16.3% from prior-year volumes. “Ireland’s decline marks the fifth straight month of dramatic deficits on the Emerald Isle,” Sharp noted. Nearby, in the United Kingdom, production fell 4% from February 2023 output.

“If the United Kingdom were still part of the European Union, it would rank third in milk collections, and it would have dragged the entire bloc’s aggregate milk production 0.5% lower than a year-ago February,” Sharp said. “Rains have not let up this spring, and production is likely to remain well below year-ago levels in the North Sea nations. However, milk output is growing at a rapid clip in Poland and is on the mend in Southern Europe.”

European dairy processors continue to send more milk to cheese vats and less to driers, Sharp noted. Compared to the first two months of 2023, adjusted for leap day, European cheese output climbed 3.9%, while production of skim milk powder and butter dropped more than 6% from early-2023 volumes, according to USDA data.

Anger in the European Union had been growing over low milk prices and Green Deal regulations that farmers say are driving them toward bankruptcy. On March 15, the European Commission (EC) published a legislative proposal to amend certain provisions of EU Common Agricultural Policy (CAP), acknowledging that following the first year of CAP implementation, it became clear that adjustments would be necessary to ensure effective implementation of each member’s National Strategic Plan and reduce red tape. The proposal also moves some of the provisions from mandatory to voluntary. The European Parliament in late April voted 425 to 130 to approve the proposed regulations, which now need to be formally adopted by the EU Council.

Making some of the Green Deal requirements voluntary instead of mandatory could help to reduce EU milk production declines in the long term, said Sharp, while improvements in weather and milk prices could help lift output in the near term.

Why Farmers Are Protesting In Europe

Tue, 20 Feb 2024 21:08:22 GMT

Farmers are protesting across the European Union, saying they are facing rising costs and taxes, red tape, excessive environmental rules and competition from cheap food imports. Demonstrations have been taking place for weeks in countries including France, Germany, Belgium, the Netherlands, Poland, Spain, Italy and Greece.

While many issues are country-specific, others are Europe-wide. Here is a detailed look at the problems that have prompted the protest movement across the bloc and in individual countries.

IMPORTS

Demonstrations in eastern Europe have focused on what farmers say is unfair competition from large amounts of imports from Ukraine, for which the EU has waived quotas and duties since Russia’s invasion. Polish farmers have been blocking traffic at the border with Ukraine, which Kyiv says is affecting its defense capability and helping Russia’s aims. Meanwhile, Czech farmers have driven their tractors into downtown Prague, disrupting traffic outside the farm ministry.

The farmers resent the imports because they say they put pressure on European prices while not meeting environmental standards imposed on EU farmers. Renewed negotiations to conclude a trade deal between the EU and South American bloc Mercosur have also fanned discontent about unfair competition in sugar, grain and meat.

RULES AND BUREAUCRACY

Farmers take issue with excessive regulation, mainly at EU level. Centre stage are new EU subsidy rules, such as a requirement to leave 4% of farmland fallow, which means not using it for a period of time.

They also denounce bureaucracy, which French farmers say their government compounds by over-complicating implementation.

In Spain, farmers have complained of “suffocating bureaucracy” drawn up in Brussels that erodes the profitability of crops.

In Greece, farmers demand higher subsidies and faster compensation for crop damage and livestock lost in 2023 floods.

RISING DIESEL FUEL COSTS

In Germany and France, the EU’s biggest agricultural producers, farmers have railed against plans to end subsidies or tax breaks on agricultural diesel. Greek farmers want a tax on diesel to be reduced.

In Romania, protests in mid-January were mainly against the high cost of diesel.

In France, many producers say a government drive to bring down food inflation has left them unable to cover high costs for energy, fertilizer and transport.

WHAT ARE GOVERNMENTS DOING?

The European Commission late last month proposed to limit agricultural imports from Ukraine by introducing an “emergency brake” for the most sensitive products - poultry, eggs and sugar - but producers say the volume would still be too high. The Commission has also exempted EU farmers for 2024 from the requirement to keep some of their land fallow while still receiving EU farm support payments, but they would need to instead grow crops without applying pesticides.

French Prime Minister Gabriel Attal announced measures including controls to insure imported foods do not have traces of pesticides banned in France or the EU, and talks to get farmers higher prices and loosen bureaucracy and regulation.

Paris and Berlin have both relented to the pressure and rowed back on plans to end subsidies or tax breaks on agricultural diesel. In Romania, the government has acted to increase diesel subsidies, address insurance rates and expedite subsidy payments.

In Portugal, the caretaker government has announced an emergency aid package worth 500 million euros, including 200 million euros to mitigate the impact of a long-running drought.

WHY FARMERS ARE PROTESTING, BY COUNTRY:

FRANCE

- EU red tape

- Diesel prices

- Need more support to shore up incomes

- Access to irrigation

- Criticism over animal welfare and use of pesticides

POLAND

- Cheap imports from Ukraine

- EU regulation

CZECH REPUBLIC

- Bureaucracy

- Cheap imports

- EU farm policy

SPAIN

- “Suffocating bureaucracy” drawn up in Brussels that they say erodes the profitability of crops

- Trade deals that they say open the door to cheap imports

PORTUGAL

- Insufficient state aid, subsidy cuts

- Red tape

ROMANIA

- Cost of diesel

- Insurance rates

- EU environmental regulations

- Cheap imports from Ukraine

BELGIUM

- EU requirement to leave 4% of land fallow

- Cheap imports

- Subsidies favoring larger farms

GREECE

- Demands for higher subsidies and faster compensation for crop damage and livestock lost in 2023 floods

- Diesel tax and surging electricity bills

- Falling state and EU subsidies

(Reporting by Sybille de La Hamaide and Gus Trompiz; Editing by Crystal Chesters)

Global Demand for Cheese Continues to Climb

Fri, 19 Jan 2024 16:00:00 GMT

People can’t get enough cheese, regardless of what continent they live on. Cheese has long been a staple in many countries’ cuisine, and in those cultures where cheese has more recently been introduced, demand continues to rise. “Global cheese demand just keeps climbing,” said Sarina Sharp, analyst with the Daily Dairy Report.

According to USDA’s semi-annual Dairy: World Markets and Trade report, global cheese consumption is projected to reach a new record high of 21.6 million metric tons, or 47.7 billion pounds, this year. Compared to 2023, global cheese consumption is up 1.2% and compared to 2019, it’s up 5.7%.

“Global cheese production is rising even faster than demand, and the United States is the major contributor to the surplus,” Sharp noted. USDA expects that U.S. cheese production will be 9.8% greater in 2024 than it was in 2019, outpacing growth in domestic consumption, which is likely to rise 8.3%. During the same period, foreign cheese output is projected to grow 4.2%, which will not keep pace with the expected 4.6% increase in foreign cheese consumption.”

Sharp’s math makes it clear that the U.S. cheese industry will continue to depend on exports, but she quickly adds that the news on going forward is positive. USDA expects that each of the world’s major cheese importers will import at least as much cheese this year as they did in 2023.

“However, slower economic growth and waning populations have softened demand in key Asian markets. Although Japan and South Korea are likely to import more cheese this year than they did in 2023, their imports are expected to still fall short of 2020, 2021, and 2022 volumes,” Sharp said. “Somewhat softer demand from these markets will likely be offset by record-setting imports from Mexico and China and record-tying purchases from Russia, the world’s second-largest market for imported cheese.”

USDA expects U.S. cheese exports to climb 7.6% this year to a record high. In late 2023, U.S. cheese prices declined even as values climbed in Europe and Oceania. That price gap will likely provide U.S. exporters with some new business in the first half of 2024.

“To keep product moving, though, prices will have to stay low enough to retain buyers’ attention,” Sharp said. “Strong exports this year could help lift the U.S. cheese market from its recent depression, but with cheese output heavy on both sides of the Atlantic, the ceiling on the cheese market will likely need to be quite low.”

For more on milk prices, read:

First Thing Today: North Korea Tensions Rise

Wed, 21 Sep 2022 07:45:01 GMT

Good morning!

Soybeans push to new highs for the month... Corn and soybean futures started the overnight session under pressure, but both markets are now trading high-range, with corn up a penny and soybeans 7 to 8 cents higher. Winter wheat futures are up 1 to 2 cents, with spring wheat posting even stronger gains. The U.S. dollar index is under moderate pressure, with crude oil futures also favoring the downside.

Harvest-friendly forecast... The National Weather Service forecast for Sept. 27 through Oct. 1 calls for normal temperatures and dry weather in the western Corn Belt and into Illinois. Indiana and Ohio are expected to see warm temperatures and normal rainfall. The Central and Southern Plains are expected to see cool, wet weather over this timeframe.

North Korean tensions rise... North Korea reacted to President Donald Trump’s latest sanctions, announced yesterday, with Kim Jong Un warning of the “highest level of hard-line countermeasure in history.” The country’s foreign minister suggested this could include testing a hydrogen bomb in the Pacific. Asian stocks closed slightly lower into the weekend following the increase in tensions.

NAFTA 2.0 negotiators meet for third round of talks in Ottawa... Round 3 of North American Free Trade Agreement (NAFTA) modernization renegotiations will include sensitive topics like dispute settlement and rules of origin for automobiles as negotiators meet Sept. 23-27 in Ottawa. An agreement on digital trade is expected to be an early win for the negotiators. Commerce Secretary Wilbur Ross is getting ahead of a more challenging third round of NAFTA negotiations with Mexico and Canada by pushing for tougher rules of origin, based on the Trump administration’s belief that auto imports in particular have too little U.S. content. U.S. Trade Representative Robert Lighthizer will submit new proposals covering rules of origin, labor standards in Mexico and dispute resolution. U.S. negotiators view achieving several changes to NAFTA as necessary for meeting Trump’s goal of cutting the U.S. trade deficit. This includes: limiting Buy American procurement waivers, increasing U.S. content in rules of origin, raising Mexican wages, and changing investment rules.

Strong Russian wheat shipments thus far in 2017-18... Russia will likely export 4.1 MMT of wheat in September, projects the ag consultancy SovEcon. This would be a 15.8% increase from year-ago and 195,000 MT increase from August. For the first three months of the 2017-18 marketing year, the consultancy projects grain exports will total 9.4 MMT, up 1.058 MMT (12.7%) from this point in 2016-17. Egypt has been its top customer.

Rainy weather reportedly slows Russian winter grain seeding... Rainy weather has delayed winter grain plantings in Russia, reports Pyotr Checkmarev, head of the ag ministry’s crop growing department. He also said “next year does not really promise a good harvest,” which is why the country should have reserves for next year. But the latest ag ministry data does not reflect any major delays. As of Sept. 21, 10.0 million hectares had been planted, or 57.5% of the intended winter grain area. That compares to seedings of 10.1 million hectares at this point last year. Regarding the 2017 grain crop, the ag ministry is sticking with its 110 MMT by clean weight peg, which is well below crop estimates from other analysts topping 130 MMT. The ministry explains that there is risk some areas won’t harvest their crop before cold weather hits.

Lagging EU wheat shipments... From the start of the 2017-18 marketing year through Sept. 19, The European Union has exported 3.7 MMT of soft wheat, down 42% from last year at this point, official trade data shows. The region has struggled to compete against an influx of cheap wheat out of the Black Sea region.

Arkansas advances a measure to ban dicamba use over growing season... Arkansas’ State Plant Board advanced a proposal that would ban the use of dicamba weed killers from April 16 to Oct. 31, 2018, meaning the state is just one step away from enacting an official ban on the herbicide that farmers charge can drift and damage crops not meant to withstand the chemical. Monsanto’s Vice President of Global Regulatory Ty Vaughn said the decision was not based on science and warned that “all options are on the table for Monsanto’s next move.” Previously, the company said it may file a lawsuit if the board denied its petition for it to reject the proposed cutoff date for sprayings, which the board did with a unanimous vote. BASF and DuPont also sell dicamba herbicides under different brand names. After a public comment period and public hearing on Nov. 8, the proposal will move to the Arkansas legislative subcommittee for final approval.

Senators push for more funding of ag export promotion programs... A group of lawmakers have introduced bipartisan legislation that would double funding over the course of five years for two of USDA’s export promotion programs -- the Market Access Program and Foreign Market Development Program. The measure was introduced by Senators Joe Donnely (D-Ind.), Angus King (I-Maine), Joni Ernst (R-Iowa) and Susan Collins (R-Maine). “As American farmers and ranchers are struggling with historically low commodity prices, maintaining and strengthening U.S. trade relationships around the world is critical to the survival and profitability of the agricultural community,” Ernst explained, adding that these programs have “proven to be effective in expanding foreign markets for American agricultural goods.”

Exchange lowers initial margins on live cattle... CME Group has lowered initial margins for speculators in live cattle futures from $1,925 per contract to $1,650 per contract; the rates will take effect after the close of business today.

Another week of extended cash cattle negotiations... Cash negotiations are again stretching late into the week. So far, just a few hundred head have changed hands in Kansas around $107. Trade could be limited leading up to the Cattle on Feed and Cold Storage Reports this afternoon. The former is expected to show a 2.9% drop in Placements from year-ago.

Pork tumbles as aggressive slaughter continues... For the third day in a row, packers slaughtered an estimated record-high 455,000 hogs on Thursday, keeping this week’s kill ahead of week-ago and well ahead of year-ago levels. In fact, this week’s kill could be near the fall high. An abundance of pork has also weighed on the product market. The pork cutout value plunged $3.01 yesterday and it is now down $4.58 from last Friday. Movement also slowed after strong load counts the prior two days.

Overnight demand news... South Korea issued a tender to buy 55,000 MT of corn from worldwide origins.

Today’s reports:

2:00 p.m., Cattle on Feed -- NASS
2:00 p.m., Chickens and Eggs -- NASS
2:00 p.m., Cold Storage -- NASS

Dairy Farmers Spray EU HQ to Push Demands for Better Prices

Fri, 20 Nov 2020 03:00:11 GMT

BRUSSELS (AP) — Dairy farmers from across the European Union have sprayed the EU’s headquarters with milk powder to protest the crisis in their sector.

Many farmers have been driven to the brink of bankruptcy as their sector has been hit with sagging prices and production costs squeezing profits.

The EU’s executive Commission has approved some support measures over the past year, but the farmers fear that releasing more milk powder on the market would further complicate their plight.

The EU did away with a complicated milk quota system two years ago, allowing for an increase in production at a time when sanctions against Russia also hit the sector. Russia imposed a ban on EU food imports in tit-for-tat retaliation after the 28-nation bloc set economic sanctions against Moscow for its annexation of the Krim peninsula in Ukraine in 2014.

“Our farmers have been so rattled by the crisis that only a real price increase and long-term stability on the market can save milk production across the EU from extinction,” said Erwin Schopges, a leader of the European Milk Board alliance of dairy farmers.

A Glance Down the Dairy Aisle in Europe

Fri, 20 Nov 2020 02:54:50 GMT

Take a walk down the dairy aisle in five European cities to see how milk prices stack up with the U.S.

Food is relatively expensive in Europe compared to the U.S., but basic milk prices at the grocery store aren’t that terrible.

Last month I visited five major cities in five different countries in Europe and at each stop I tried to note the cost for milk and other dairy products by taking photos.

Prior to leaving for Europe a gallon of whole milk at a Kansas City grocery store was selling for approximately $4. That calculates to $1.06 per liter when comparing to European measures.

Here are some of the prices per liter when converted to the U.S. Dollar:

London, United Kingdom

Whole Milk $0.68 per liter

Skimmed Milk $1.08 per liter

Semi-skimmed Milk $0.68 per liter

A2 Semi-skimmed Milk $2.16 per liter

Lactose Free Milk $2.09 per liter

Organic Skimmed Milk $1.55 per liter

Paris, France

Natural Fermented Milk $1.96 per liter
Organic Fresh Whole Milk $2.14 per liter
Whole Milk $1.43 per liter

Amsterdam, Netherlands

Yogurt Flavored Milk $1.08 per liter
Skim Milk $1.06 per liter
Whole Milk $0.95 per liter
Semi-skimmed Milk $1.01 per liter

Brussels, Belgium

Semi-skimmed Milk $2.18 per liter
Whole Milk $1.95 per liter
Organic Buttermilk $1.96 per liter

3.5% Fat Milk $1.80 per liter
1.5% Fat Milk $1.95 per liter

Frankfurt, Germany

3.5% Fat Milk $1.52 per liter
1.5% Fat Milk $1.52 per liter

Buttermilk $2.18 per liter
Kefir $3.26 per liter
Fruit Flavored Yogurt Milk $3.26 per liter

There was quite a bit of variability in prices and locations of the grocery stores may have played a role in pricing. The London and Amsterdam prices both came from stores that were considerably farther away from the city centers than Brussels, Paris and Frankfurt.

It was also interesting to see some of the different flavors and kinds of dairy drinks that were being sold in Europe.

Fat is Back; Butter Benefits

Fri, 20 Nov 2020 01:53:51 GMT

(Bloomberg) -- Consumers aren’t just eating more butter, they are willing to pay more for it, a boon that’s giving outsize gains to makers of premium brands.

Global retail butter sales will expand 2.9 percent to $19.4 billion in 2018, outpacing the 1.9 percent growth in sales volumes, according to Euromonitor International. The trend is fanning the expansion of international brands benefiting from a consumer shift to more natural fats, according to Raphael Moreau, a senior research analyst with the research firm in London.

Demand for butter, cream and other commodities rich in butterfat has increased after consumer perceptions were swayed by studies indicating lower health risks from consuming dairy-fat and the detrimental effects of alternative trans fats, the U.S. Department of Agriculture said in a Feb. 14 report. That’s underpinning prices, which reached a record last September amid shortages in Europe.

“Consumers are increasingly demanding dairy products that are richer in fat as they are allowing fat, and thus also butter, back into their diets,” Hanne Soendergaard, Arla Foods amba’s executive vice president of marketing and innovation, said in an email.

Read More: Is This Butter Really Worth $50 a Pound? Top Chefs Argue Yes

Stronger demand for high quality premium brands is supporting sales of Arla’s Lurpak butter, which “consumers are willing to pay a higher price for,” she said. Lurpak revenue jumped 8.3 percent in 2017 even though sales volumes declined 2.7 percent, Aarhus, Denmark-based Arla said Wednesday in its annual earnings report.

Retail butter sales in North America posted a 7 percent compound annual growth rate from 2012 to 2017 in value terms at fixed exchange rates, Euromonitor’s Moreau said. That compares with 2 percent growth in Western Europe.

Land O’ Lakes

“The global sales of U.S. companies benefited strongly from this rise in butter consumption in their domestic market,” he said. This was particularly the case for Land O’ Lakes Inc., an Arden Hills, Minnesota-based cooperative owned by farmers and ranchers, whose namesake butter brand is the world’s most-valuable, according to Euromonitor.

European-style butters are also selling particularly well through higher-end retail stores, said Michael McCully, owner of the McCully Group LLC, a U.S. food and dairy consultancy.

“There is a bigger differentiation in the U.S. market as the domestically produced butter is 80 percent fat, while the global standard is 82 percent fat,” McCully said. More fat often means more flavor. “You can also find slow-churned butter with higher fat, cultured butter, and other more specialty butters that, while small in volume, are increasing in share.”

Raw milk is processed to make butter and skim milk powder -- an ingredient used in everything from infant formula and dough nuts to ice cream and sausages. An oversupply of skim milk powder, or SMP -- and corresponding low prices -- have made dairy processors reluctant to increase production, effectively limiting butter supplies.

From a 2-million-ton butter stockpile in the mid 1980s, global inventories have dwindled to less than 12 days’ supply, an analysis of USDA data show. Coupled with strong demand in many markets, that should keep prices high.

“Looking forward to 2018, butter pricing, while significantly lower, is likely to remain high historically as stocks will take time to replenish with SMP pricing so weak,” said Ciaran Aylward, an economist at Dublin-based Ornua Co-operative Ltd., which makes Kerrygold, the world’s third most-valuable butter brand.

European butter prices rocketed to 6,500 euros ($8,000) a metric ton last September from 2,350 euros/ton in March 2016, Aylward said in a Jan. 4 statement. While prices fell in the fourth quarter of 2017, so far in 2018 they have gained about 19 percent for exporters in New Zealand, the world’s largest butter exporter.

In the longer term, prices will strengthen in 2018 and dip over the next few years before reaching new highs within a decade, the USDA predicted this month.

Currently, major butter-buyers are likely to delay orders until European milk production picks up in the spring, when higher supplies are expected to soften prices, according to Steve Spencer, director of Fresh Agenda, a Melbourne-based food researcher and advisory firm. Spencer said he was surprised at how resilient more-affluent butter markets in Southeast Asia were amid the soaring prices.

“When prices rose sharply around the world, some markets didn’t flinch, still demand held up,” he said in an interview. “The world industry has done a good job convincing consumers that this is ‘good’ fat and better, and there’s nothing like testing how loyal they are by hiking prices.”

It’s not just butter that’s benefiting from consumers’ renewed taste for animal-fats. Danone, the world’s largest yogurt maker, has started selling a full fat version of its Activia brand in the Nordic region, “which nobody would’ve expected to exist a few years ago,” Chairman and Chief Executive Officer Emmanuel Faber said last week.

“There is a very segmented approach to what consumers consider as healthy or not,” Faber told analysts and investors on a Feb. 16 conference call to discuss fourth-quarter earnings. “Sugar is clearly not what they want to see, but fat, including animal fat, is a trend that’s back.”

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