Global Dairy Prices Continue to Fall
GENERAL - Prices of dairy products began to decline in mid-2011, as supplies to the international market improved. In April, after a favourable outcome of the milk-producing season in the Southern Hemisphere and an equally positive opening of the season in the Northern Hemisphere, prices registered a further fall, according to the FAO Global Food Outlook.
8 May 2012
1 minute read
The price slide reflected a rise in
export availability but also a fall in the value of the euro
against the US dollar. Yet, in spite of the recent drop,
international prices for dairy products remain well above
historical averages.
With publically financed inventories at minimal levels in the
EU and the United States, the market is particularly sensitive
to sudden changes in milk production and the availability of
milk products. Nonetheless, the positive supply outlook for
the rest of 2012 is likely to translate into further downward
pressure on prices.
World milk production in 2012 is forecast to grow by 2.7
per cent to 750 million tonnes. Asia is expected to account
for most of the increase, but higher output is anticipated in
most regions.
World trade in dairy products is foreseen to continue
expanding in 2012. Demand remains firm, with imports
anticipated to reach 52.7 million tonnes of milk equivalent.
Asia will continue to be the main market, followed by
North Africa, the Middle East, and Latin America and the
Caribbean. Growing world import demand is expected to
be met mainly through pasture-based milk supplies from
Oceania and South America.
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