GLOBAL – Today’s global dairy trade closed down 3.5 per cent, taking the index to its lowest point since August 2009.
The fourth consecutive negative result was driven by Butter Milk Powder and Rennet Casein closing down 14 per cent and 11 per cent respectively.
Butter and milk powders also slipped, seeing average prices across all commodities of $2,515/MT.
The drop comes despite China’s first quarter return to the dairy commodity markets, say Dairyco analysts.
The UK levy board pins the blame on global oversupply being the ‘main reason’ behind low milk prices and says future supplies will be key to a price recovery.
Analysts said China leaving the market was one of the factors that caused the dairy downturn in 2014.
“Data from four of the world’s main exporting regions, Australia, New Zealand, the USA and the EU show that milk production in the first two months of the year remains above the 3 year average," said Dairyco.
"Many in the industry looked forward to the time when Chinese buyers returned in the hope that this would be a signal for prices to rise again.
"Over the first quarter of 2015 Chinese buyers have begun to return to the market with imported volumes at similar levels to 2013. Despite this, global prices are yet to respond."
Top image via Shutterstock