Global dairy prices collapse to 13-year low

6 August 2015 04:15 am - 0 - {{hitsCtrl.values.hits}}

A A A

agrimoney.com: Global dairy prices have plunged to a 13-year low, with whole milk powder suffering particularly sharp losses.

Prices on yesterday’s GlobalDairyTrade auction, which is run by New Zealand milk giant Fonterra, fell 10.7 percent from the last trading event two weeks ago.
Prices broke a previous 2009 low and are now at their lowest level since 2002. Whole milk powder, which is used in the all-important infant food market, was down 13.1 percent, with sharp falls in all traded products except lactose. Global dairy prices have been languishing since Chinese buying dried up last year, leaving a market with thick supply and low demand.

China is the world’s largest dairy importer and is believed to have a substantial backlog of milk powder to work through.

John Lancaster of FCStone told agrimoney.com that prices in the recent auction might also have felt some pressure from the stock market crash in China.
“The magnitude of the fall doesn’t bode well for a recovery in prices,” he said.

The global dairy market has seen pressure from European production.

The EU recently abandoned a milk quota system, and farmers. A recent hot spell across Europe, particularly France, has threatened to cut the availability of forage.

But Lancaster said that “we have large amounts of excess milk across Europe” and noted that European milk production was already set to decline seasonally.

“It would have to be a long-term event to have a larger impact on supply,” he said.

Asked if there was any factor that could lift prices, Lancaster said “it’s difficult to see it getting a substantial increase in the short term until the excess supplies have been eaten though”.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Global dairy prices collapse to 13-year low

Comments - 0

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

Uma Oya Development Project inaugurated

Sri Lankan among NASA’s new crew for next simulated Mars journey

Former MP Palitha Thewarapperuma dies from electrocution

SL on alert on possible genocide allegations by Canada

Street food vendor arrested for verbally harassing foreigner

MIRROR CRICKET

Is Chamari Athapaththu Sri Lanka’s greatest cricketer ever?

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

TODAY'S HEADLINES

No footboard riding allowed, no liability for accidents: Railways Department

Six patients claim Rs.600 million from Keheliya and others for permanent loss of sight

SLPP, UNP initiates action for forming broad alliance

Here is the way!

Pakistan lose key players for last two T20Is against New Zealand

Sri Lanka secures third spot in South Asian Kurash Championship 2024

Athapaththu back atop ICC Women’s ODI Batting Rankings

Army forms committee to probe Diyatalawa Fox Hill Supercross accident