Hunt was the keynote speaker at the recent Dairy Elite Producer Business conference in Las Vegas.
While he sees further difficulties in the beginning of 2016, Hunt said suppliers were applying the brakes on production worldwide and consumption was being reawakened by the lower prices. As a result, “pricing will likely enter a sustained upward phase in mid 2016,” TheGlobalDairy.com website quoted Hunt as saying.
Hunt cited hopes that China would soon run through its high stocks of dairy products without increasing its domestic production fast enough to replace imports.
He also said that the El Niño weather phenomenon was expected to bring down production in New Zealand next winter and pointed out that the current global milk oversupply represents no more than three week’s worth of international trade.
However, he acknowledged that there could be hiccups along the way, including further crises in the world economy or unforeseen movements on currency exchange rates.
Source: FarmersJournall
