From floods to heatwaves, extreme weather is hitting dairy farms hard. What does it mean for global supply and your next shipment?
Climate isn’t just a background factor anymore – it’s becoming one of the biggest drivers of change in the global dairy market. From India to Australia, unusual weather patterns are directly impacting production, pricing, and availability. Here’s a look at what’s happening and why it matters for exporters, importers, and dairy industry professionals.
☀️ India: Heatwave Shrinks Output, Prices Climb
In central India, particularly around Indore, temperatures have soared by up to 8 °C in just ten days – and the impact has been immediate. Local milk production has dropped by approximately 100,000 liters per day, causing retail prices to rise by ₹2/L. With demand for summer dairy products like lassi and curd increasing, the supply crunch is putting processors and retailers under pressure.
🌧 Australia: Dry Weather Meets Feed Shortages
Down south, Australian dairy producers are facing a tough end to the 2024/25 season. Dry conditions and feed shortages have limited milk output in regions like western Victoria and South Australia. Production is slightly down year-on-year, and fodder prices have surged due to both high demand and low reserves. Even with strong export volumes, local production remains vulnerable.
🧈 New Zealand: Butter Boom, but at What Cost?
While New Zealand has seen a surge in butter prices – up nearly 65% in one year – the domestic market is struggling to keep up. With much of the output geared toward export, local consumers and bakeries are feeling the shortage. Some have even turned to home churning to make up for the lack of availability.
🌍 Why It Matters for You
If you work in dairy trading, these shifts aren’t just news – they’re a signal. Weather extremes are no longer isolated events; they are reshaping the supply chain. That means:
– Tighter margins for buyers in affected regions
– More volatile pricing and freight planning
– Higher value in secure sourcing and brokerage partnerships
UNICITY BROKER follows these trends closely so you can anticipate disruptions before they hit your business.
📌 Need help navigating supply shifts?
Let’s talk. We connect you with reliable producers and buyers – even when the market changes overnight.