Milk supply continues to be extremely fragile across the world with a variety of reasons causing the current crisis. Prices have continued to move upwards since the start of the year.
An interesting side effect of the situation in Europe is that big European dairy traders from countries such as the Netherlands are looking towards the US for cheaper cheese imports.
In the Midwest region of the US, milk production is increasing seasonally, which some cheesemakers say will increase availability in the coming weeks. Cheesemakers say demand is strong for retail cheddar and Italian-style cheese with Asian buyers purchasing loads to ship in Q2 of 2023.
Prices decreased in September after record prices in August. However, demand is gaining strength and will probably limit further downward price pressure. Higher prices achieved in recent months enabled producers to absorb increases in operating costs.
Milk production in Latin America has increased 3.3% in H1 2022, compared to the same period last year. Favourable weather conditions have contributed to this increase, helping countries previously impacted by drought to see production move back into growth. Elevated milk prices have also supported this increase in volumes.
Higher production in Brazil has seen import demand drop back significantly. This has freed up product to be exported to destinations such as Algeria and China in recent months.