#Dairy to boom in 2014

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THE future looks bright for dairy on a global scale, according to analysis by agribusiness specialist Rabobank.
International dairy commodity prices strengthened from already high levels in the three months to mid-December and are expected to remain high at least for the first half of 2014.
The increase of export supply since September, as producers have responded to improved margins, has been largely soaked up by continuing vigorous buying from China.
«Global prices have remained high despite the taps being turned on in key export regions,» said Rabobank analyst, Tim Hunt.
China driving sales
«China continues to buy exceptionally large volumes of product from the international market to supplement falling local milk supply and this is likely to mop up most, if not all, of the increase in exports arising from key surplus regions in Q4.»
Despite a small softening in prices in October and November, global prices have remained high due to an uptick in December.
By mid-December, Whole Milk Powder (WMP) held above 5000 USD/tonne in fob Oceania trade, while prices of other key commodities rose between 3 per cent and 5pc, as Southern Hemisphere processors switched milk type towards the higher yielding WMP.
China’s buying has left the rest of the buyside of the international market with less supply to go round, keeping the market tight.
Rabobank believes that many of the buyers in regions including South East Asia, the Middle East and North Africa, have used up all meaningful back up stocks after a period of prolonged belt-tightening. They are now struggling to secure enough supply to sustain sales of key lines. With export supply still in the early stages of recovery, prices have had to edge up even further in Q4 to ration supply.
Farmgate prices to record highs
The global dairy market will enter 2014 with farmgate milk prices at record or near record highs in many export and import regions.
 
Source: Stock Journal

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Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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