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Treat Global Dairy Trade Increase “With Caution”

19 August 2015

GLOBAL – The dairy industry shouldn't get carried away at Tuesday's 14.8 per cent increase in the Global Dairy Trade, which saw strong gains across several products, say UK analysts.

Biggest gains were reported for Anhydrous Milk Fat – up 26.6 per cent - with Milk Powders and Butter increasing notably, although AHDB Dairy, the UK levy board, said the positive result should be “treated with caution”.

A smaller product offering and increased buyers combined to produce a “better than expected result”.

“Globally supply is still plentiful but buyers may now be more interested in the market,” said an AHDB spokesperson. “The next few auctions could be crucial to whether wholesale prices react positively or not.”

The announcement, however, is a “pleasant surprise” and ends a run of ten negative results stretching back to March.

Two significant price reductions were reported. Butter Milk Powder and Lactose slipped 13.8 per cent and 7.8 per cent respectively.

TheCattleSite News Desk

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