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FAO: April Dairy Price Rise Caused By Stock Shortage

10 May 2013

GLOBAL – The price surge in global dairy products was caused by a lack of commercial stocks following a steep decline in New Zealand’s milk output, according to the Food and Agriculture Organisation.

Sharp rises in dairy products through April were reflected in a 34 point rise in the FAO dairy price index. This equates to a rise of almost 15 per cent.

Abnormal conditions in New Zealand caused herds to be dried off early and milk cows to be culled which the FAO states as the main driver of the increase as there was an absence of commercial stocks to cope with a lack of availability.

Overall, New Zealand’s output has been forecast to finish close to last season's levels with warmer weather across Europe bringing a bullish outlook of cumulative milk production.

TheCattleSite News Desk

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