Rabobank: Global milk production growth to rebalance with retail, foodservice and export dairy demand
Milk production growth across the major export engines began in quarter two 2020 and is forecast to continue expanding into 2021.
With milk production forecast to grow over the next 12 months and consumption taking time to recover, global market fundamentals are expected to remain weak into quarter two 2021, according to “A Delicate Rebalancing,” a quarter-three 2020 Global Dairy Quarterly report from Rabobank. At that point, the level of exportable surplus should retreat, as domestic consumption improves, the Utrecht, Netherlands-based cooperative bank said.
Milk production growth across the major export engines began in quarter two 2020 and is forecast to continue expanding into 2021, Rabobank said, a feat not matched since 2018. Rabobank expects a 1.3% year-over-year increase in production across the big seven dairy regions in quarter four 2020, 1.0% in the first half of 2021, and 0.8% in the second half of 2021.