El Niño’s impact on global dairy supply and trade

Operational uncertainty for global dairy supply due to ‘El Niño’ patterns is threatening pasture and water security across major Southern Hemisphere exporting countries. These climate changes are combining with broader farmgate margin squeezes and rising input costs, such as energy and fertilizer used for raw milk yields. According to Rabobank’s Global Dairy Quarterly, global milk production growth is slowing sharply from its peak of 5.2% Y-o-Y down to a projected 1.6% contraction by the fourth quarter.