Ukraine war latest: Biden to skip Kyiv on trip to Europe

Milk costs are hovering on the expectation {that a} tight market shall be hit by additional disruption to fertiliser and feed provides and inflationary pressures following Russia’s invasion of Ukraine.

Dangerous climate in New Zealand, the US and Australia had already mixed with rocketing fuel costs and pandemic-related provide chain disruptions to place stress on milk producers within the 5 greatest exporters earlier than the conflict.

Mixed milk manufacturing in New Zealand — often known as the “Saudi Arabia of milk” as a result of it controls 35 per cent of worldwide exports — the EU, Australia, the US and Argentina fell 1.7 per cent in January in contrast with the earlier 12 months, in line with commodity dealer StoneX.

Milk output for the 5 producers fell 12 months on 12 months, with New Zealand and Australia posting declines of greater than 6 per cent.

After the beginning of the conflict on February 24, costs of essential merchandise have risen additional. Anhydrous milk fats, a core dairy product, hit a file $7,111 a tonne on March 15, in line with the World Dairy Commerce index, which displays New Zealand dairy costs. Entire milk powder, essentially the most actively traded product, hit an eight-year excessive this month.

New Zealand firm Fonterra, the world’s greatest dairy exporter, mentioned final week it was paying farmers 30 per cent extra for milk than it did a 12 months in the past and forecast the worth would rise additional.

Learn extra concerning the worth of milk