Breakeven Milk Price Analysis – May 16
Current milk prices in the U.S., New Zealand and the EU-28 are believed to be below breakeven levels however combined milk production growth within the major global dairy exporting regions continues to expand. Breakeven milk prices are important to consider as they can be a barometer for future reductions in dairy cow herds.
The New Zealand dairy cow herd is projected to decline by the largest figure on record throughout 2016 as continued negative margins are expected to weigh on producers but declines in the EU-28 and U.S. dairy cow herds are expected to be minimal over coming months as cumulative losses have been lower in these regions. Prices are unlikely to rise until global dairy supply and demand return to equilibrium, and that is unlikely unless global milk production slows. Please contact us if you would like to learn more about our dairy research products, including the current report that analyzes breakeven milk prices.
The New Zealand dairy cow herd is projected to decline by the largest figure on record throughout 2016 as continued negative margins are expected to weigh on producers but declines in the EU-28 and U.S. dairy cow herds are expected to be minimal over coming months as cumulative losses have been lower in these regions. Prices are unlikely to rise until global dairy supply and demand return to equilibrium, and that is unlikely unless global milk production slows. Please contact us if you would like to learn more about our dairy research products, including the current report that analyzes breakeven milk prices.