Rabobank outlook suggests slow recovery in milk prices

In its latest quarterly report, Rabobank sees lower milk production in all exporting countries except the US, but price increases will be hampered by present stock levels, John Boylan reports. By John Boylan
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Despite low oil prices, demand for butter and cheese continues to improve across the world apart from in the oil-producing countries.
Production in the EU has fallen faster than expected because of poor weather, together with the EU Commission’s voluntary milk production scheme.
Poor weather and flooding has led to a drop in excess of 10% in South American countries, including Argentina and Brazil. Even though milk prices have increased significantly, it will take some time for cow numbers to build to regain milk supplies.
In Australia, supplies are down by 10% since the milk price cut earlier this year.
Milk production in New Zealand is reduced by almost 1% due to poor weather in the North Island as well as a cut in imported feed as a result of the low milk price.
Hot weather and reduced milk prices in China resulted in a drop in production, but dairy product imports have been erratic.
The US continues to defy logic by continuing to increase production even though their product prices are uncompetitive as a result of the high value of the US dollar. The extra domestic consumption cannot continue to cope with all the extra production.
Source: FarmersJournal
Link: http://www.farmersjournal.ie/rabobank-outlook-suggests-slow-recovery-in-milk-prices-229034

Mirá También

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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