EU Dairy Commodity Prices 2023
The European Union (EU) is one of the world’s largest producer of milk and dairy products. The EU dairy commodity prices are expected to remain relatively stable in 2023, with milk production forecast to increase by 0.2%. However, milk prices are expected to decline by 1%, due to a number of factors, including:
- The rising cost of feed: The cost of feed is a major input cost for dairy farmers, and any increase in the cost of feed will likely be passed on to consumers in the form of lower milk prices.
- The war in Ukraine: The war in Ukraine has disrupted the global supply chain for agricultural commodities, including milk. This has led to higher prices for feed and other inputs, which is putting downward pressure on milk prices.
- The global economic slowdown: The global economic slowdown is also expected to weigh on milk prices. As consumers have less disposable income, they are likely to cut back on their spending on dairy products.
Despite the decline in milk prices, the EU dairy market is still expected to be profitable for dairy farmers. The EU has a strong export market for dairy products, and the demand for dairy products is expected to remain stable in 2023.
Here are some other key factors that could affect EU dairy commodity prices in 2023:
- The weather: The weather can have a significant impact on milk production. A cold winter or a dry summer could lead to lower milk production, which could push up prices.
- The exchange rate: The euro exchange rate could also affect milk prices. If the euro weakens against the US dollar, it will make European dairy products cheaper for international buyers, which could lead to lower prices in the EU.
- Government policies: Government policies, such as subsidies for dairy farmers, can also affect milk prices.
Here are some specific EU dairy commodity prices:
- Butter: Butter prices in EU are expected to decline by 2% in 2023, due to the factors mentioned above.
- Milk powder: Milk powder prices in EU are expected to decline by 1% in 2023, for the same reasons.
- Cheese: Cheese prices in EU are expected to remain stable in 2023, as the demand for cheese is expected to remain strong.
Overall, the EU dairy market is expected to remain relatively stable in 2023. However, milk prices are expected to decline, due to a number of factors. The key factors that could affect milk prices in 2023 include the cost of feed, the war in Ukraine, the global economic slowdown, the weather, and government policies.
Milk Predict is a dairy market intelligence platform that provides forecasts of dairy product prices in the EU. It uses a variety of factors to generate its forecasts, including:
- Historical data on milk production, consumption, and prices
- Current market conditions, such as the cost of feed, the weather, and government policies
- Expert analysis of the dairy market
Milk Predict can provide forecasts for 14+ dairy items in the EU, including:
- Milk powder