Skim milk powder has long been the by-product of the dairy world, but strong global demand for protein has turned it into one of the main drivers of the market. Anne Lee speaks with HighGround Dairy’s Stu Davison about the forces behind the latest Global Dairy Trade jump of more than 4%. They cover skim milk powder prices topping US$4000/t for the first time since 2022, and why milkfat prices are falling while powders are rising.

 

Host:
Anne Lee, Senior Journalist, Dairy Country

Guest:
Stu Davison, HighGround Dairy

 

Stu explains how GLP-1 weight-loss drugs, protein-enhanced foods and the shift towards milk protein concentrate and ultra-filtered milk have tightened global skim supplies. He also explains why the Middle East bought its largest GDT volumes since 2012. Speaking from Singapore after visits to Indonesia and China, he shares what he saw on the ground: falling milk production in China, cautious Chinese consumers, and new desert dairy farms in Inner Mongolia and Algeria that New Zealand will have to compete with. Anne and Stu also discuss Europe’s surprisingly resilient milk supply, the growing stocks of butter, and milk price futures trading above $10/kgMS. Stu explains the role of the weak Kiwi dollar and the risk to prices if El Niño doesn’t cut milk supply as much as the market expects. He also makes the case for a disciplined hedging policy over trying to pick the market.

 

Sign up to the weekly DAIRY Country email newsletter here: https://dairycountry.co.nz/sign-up/

Skim milk powder has long been the by-product of the dairy world, but strong global demand for protein has turned it into one of the main drivers of the market. Anne Lee speaks with HighGround Dairy&rsquo;s Stu Davison about the forces behind the latest Global Dairy Trade jump of more than 4%. They cover skim milk powder prices topping US$4000/t for the first time since 2022, and why milkfat prices are falling while powders are rising.
&nbsp;
Host:
<ul>
<li aria-level="1">Anne Lee, Senior Journalist, Dairy Country</li>
</ul>
Guest:
<ul>
<li aria-level="1">Stu Davison, HighGround Dairy</li>
</ul>
&nbsp;
Stu explains how GLP-1 weight-loss drugs, protein-enhanced foods and the shift towards milk protein concentrate and ultra-filtered milk have tightened global skim supplies. He also explains why the Middle East bought its largest GDT volumes since 2012. Speaking from Singapore after visits to Indonesia and China, he shares what he saw on the ground: falling milk production in China, cautious Chinese consumers, and new desert dairy farms in Inner Mongolia and Algeria that New Zealand will have to compete with. Anne and Stu also discuss Europe&rsquo;s surprisingly resilient milk supply, the growing stocks of butter, and milk price futures trading above $10/kgMS. Stu explains the role of the weak Kiwi dollar and the risk to prices if El Ni&ntilde;o doesn&rsquo;t cut milk supply as much as the market expects. He also makes the case for a disciplined hedging policy over trying to pick the market.
&nbsp;
Sign up to the weekly DAIRY Country email newsletter here: <a href="https://dairycountry.co.nz/sign-up/">https://dairycountry.co.nz/sign-up/</a>

DAIRY Country is your mainstay in dairy farming as your trusted source for adding value to your dairy farming business with seasonal on farm stories and exclusive technical advice weekly with your host, Anne Lee.

Formally the NZ Dairy Exporter since 1925, DAIRY Country is part of the CountryWide network based in Canterbury, New Zealand.

Get in touch with our Anne Lee - anne@countrywidemedia.co.nz if you have a great insight to share with our
thousands of readers and listeners in New Zealand and around the world.

Don’t miss our weekly episodes of the DAIRY Country Podcast by hitting the subscribe button now and join our DAIRY Country weekly email newsletter to get the latest in-depth stories in your mailbox so you are always ahead of the game in the
business of dairy farming into the future.

DAIRY Country is your mainstay in dairy farming as your trusted source for adding value to your dairy farming business with seasonal on farm stories and exclusive technical advice weekly with your host, Anne Lee.
Formally the NZ Dairy Exporter since 1925, DAIRY Country is part of the CountryWide network based in Canterbury, New Zealand.
Get in touch with our Anne Lee - anne@countrywidemedia.co.nz if you have a great insight to share with our thousands of readers and listeners in New Zealand and around the world.
Don&rsquo;t miss our weekly episodes of the DAIRY Country Podcast by hitting the&nbsp;subscribe button now and <a href="https://dairyexporter.co.nz/sign-up/">join our DAIRY Country weekly email newsletter</a> to get the&nbsp;latest in-depth stories in your mailbox so you are always ahead of the game in the business of dairy farming into the future.