# Global dairy deficit to buoy milk markets

> Combined milk output from the largest dairy exporters (New Zealand, EU, US, Argentina, Australia) fell below prior-year levels from September 2021 and had not recovered by mid-2022, with first-half output about 1.1% lower. Environmental rules in Europe and New Zealand are capping herds, Australian drought has shrunk the herd, and South American inflation and currency volatility are curbing investment. US producers face high feed and hay costs, with Central Valley hay near $450 per ton.

- Date: 2022-09-25 · published 2022-09-25T12:00:00.000Z
- Category: weather · region Global · magnitude medium
- Page: https://feedsoft.ai/events/9912-global-dairy-deficit-to-buoy-milk-markets
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

A prolonged global milk shortfall with slow supply response keeps dairy supplies tight and supports milk prices. Higher feed and hay costs also squeeze producer margins, which can further limit output.

## Read by commodity

- MILK: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2018-06-20 | [Where are milk prices headed in rising dairy markets? - Farmers Weekly](https://feedsoft.ai/events/64546-where-are-milk-prices-headed-in-rising-dairy-markets-farmers-weekly.md) | -0.7% | -7.0% |
| MILK | 2022-10-03 | [Dairy prices 'to rise' at Tuesday's GlobalDairyTrade, buoyed by NZ output slide - Grain Price News](https://feedsoft.ai/events/5116-dairy-prices-to-rise-at-tuesday-s-globaldairytrade-buoyed-by-nz-output-slide.md) | +11.4% | +10.0% |
| MILK | 2019-01-03 | [Tight margins, weather slow global milk production \| Capital Press](https://feedsoft.ai/events/7674-tight-margins-weather-slow-global-milk-production-capital-press.md) | +1.7% | +1.5% |
| MILK | 2019-02-20 | [International prices for milk and dairy products](https://feedsoft.ai/events/9987-international-prices-for-milk-and-dairy-products.md) | -0.3% | +6.8% |

## Sources

- hoards.com: https://hoards.com/article-32519-global-dairy-deficit-to-buoy-milk-markets.html

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