Existing pandemic-related disruptions are being exacerbated as a result of the war
© Getty Images / vandervelden
Global prices for milk are reportedly facing a further dramatic growth due to the Russia-Ukraine conflict, adding to the existing pressures from rising energy costs and disruptions related to the coronavirus pandemic.
Supply chain disruption due to Covid has already caused the price of products vital to dairy production, such as whole milk powder and anhydrous milk fats, to skyrocket.
In January, producers in Australia, New Zealand (which alone controls about 35% of global milk exports), the EU, the US, and Argentina saw an output drop of 1.7% year-on-year, according to data from commodity broker StoneX, as quoted by the Financial Times.
New Zealand and the EU together account for around 70% of all milk exports, followed by the US, Australia, Brazil and Argentina. However, output has fallen steeply, with New Zealand and Australia posting declines of over 6%.
Anhydrous milk fat hit a record price of $7,111 per ton on March 15, while whole milk powder surged to an eight-year high this month.