# Tight margins, weather slow global milk production | Capital Press

> Rabobank reports that combined milk supply growth from major exporters slowed to 0.8 percent in the third quarter of 2018 and is expected to stay well under 1 percent in 2019. Drought in northwestern Europe and Australia reduced feed and forage output, while tight US farm margins and Dutch phosphate rules also reduce output.

- Date: 2019-01-03 · published 2019-01-03T12:00:00.000Z
- Category: weather · region Global · magnitude medium
- Page: https://feedsoft.ai/events/7674-tight-margins-weather-slow-global-milk-production-capital-press
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Drought-reduced forage and feed supply plus slowing milk output tightens global dairy supply, supporting milk prices and higher feed costs for dairy producers.

## Read by commodity

- MILK: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2019-01-03 | 1 | +3.7% | 4.1 | Rabobank's report of slowing milk supply growth from major exporters, driven by drought, tight margins and Dutch phosphate rules, supports a tighter supply outlook and higher futures. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2017-06-27 | [California's triple-digit heat slows milk production, threatens crops](https://feedsoft.ai/events/10593-california-s-triple-digit-heat-slows-milk-production-threatens-crops.md) | -4.2% | -5.1% |
| MILK | 2026-07-22 | [Hot Weather Gives Cheese Markets a Boost as Milk Supplies Tighten - Dairy Herd](https://feedsoft.ai/events/18528-hot-weather-gives-cheese-markets-a-boost-as-milk-supplies-tighten-dairy-herd.md) | +0.2% | +5.0% |
| MILK | 2019-02-19 | [Lee Mielke: Cheese prices continue to strengthen \| Capital Press](https://feedsoft.ai/events/9988-lee-mielke-cheese-prices-continue-to-strengthen-capital-press.md) | -0.1% | +6.8% |
| MILK | 2019-12-06 | [No sign of flush season this year, production of milk drops across Maharashtra \| Mumbai News - The Indian Express](https://feedsoft.ai/events/6375-no-sign-of-flush-season-this-year-production-of-milk-drops-across-maharashtra.md) | +0.3% | -12.4% |
| MILK | 2024-07-27 | [Dairy Market Mania: How Heatwaves, Bird Flu, and Heifer Shortages are Shaking Up Milk Production and Prices \| The Bullvine](https://feedsoft.ai/events/6829-dairy-market-mania-how-heatwaves-bird-flu-and-heifer-shortages-are-shaking-up.md) | +2.4% | +4.2% |

## Sources

- capitalpress.com: https://capitalpress.com/2019/01/03/tight-margins-weather-slow-global-milk-production/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.