August 23, 2016
Global dairy market showing signs of stabilisation
The global dairy market may be starting to return to balance as China's dairy imports climbed 26% in the 12 months through June and EU milk production slowed for the third month in May, according to a report from The New Zealand Herald.
Citing the Fonterra Cooperative Group's Global Dairy Update, the report said the EU milk production growth has been at its slowest since early 2015, rising by just 1% in May from the same month last year.
Milk output in Australia and New Zealand in the 12 months ended June 30 both declined 2% and that in the US gained a minimal 1%.
Global dairy exports, on the other hand, remained strong, Fonterra's monthly update showed. New Zealand, Australian, EU and US dairy exports all posted robust yearly and May 2016 growths, according to the report.
Dairy imports grew in China (26%), Latin America (10%) and Asia ex-China (3%). Imports to Middle East and Africa fell 5%.
The update follows the latest GlobalDairyTrade auction that saw dairy prices increase more than expected, indicating a worldwide supply glut is easing.