May 20, 2014

Analysts: global dairy market on the decline

The global dairy market is seeing signs of slowing as prices continue to slowly decline, a Dairy Australia analyst was cited as saying in The Weekly Times.

Global Dairy Trade prices fell 1.1% to US$3950/tonne last week, while losing 22.4% since the start of February, according to Dairy Australia analyst, John Droppert.

According to Droppert, the declining auction price was caused by improved farmgate prices in the southern hemisphere coupled with the northern hemispheres peak season.

Additionally, the decline is also a result of China's recent absence from the market and potential discounting from New-Zealand co-operatives as they are clearing products before the end of the financial year.