The seven are the United States, the European Union, New Zealand, Australia, Brazil, Argentina, and Uruguay.
“The ongoing war between Russia and Ukraine has caused grains and oilseeds – among several other agricultural commodities and products – to reach unprecedented price levels,” according to Rabobank.
“Although fertiliser is flowing from Russian ports, prices remain elevated, resulting in higher feed costs. Producers purchasing feed off-farm will be more susceptible to inflated agricultural commodity prices than producers that grow their own feed.”
Although fertiliser is flowing from Russian ports, prices remain elevated, resulting in higher feed costs.
Also, the current logistical and financial challenges surrounding shipping make imported feeds very expensive, reducing producers’ margins.
“On the plus side, strong farmgate prices are partially offsetting rising input costs, with May’s weighted average EU raw milk price up by 3% month-on-month to EUR 47.36 per 100 kg,” Rabobank said.
“In the US, milk production increases are stunted by a smaller dairy herd year-on-year, which is expected to be on par this fall.”