Dairy Prices to Continue Improving Next Year

UKRAINE - Dairy prices will continue to improve next year as a result of strong demand and contracting supplies, says Rabobank.
calendar icon 27 December 2016
clock icon 1 minute read

Farmers producing milk have experienced an extremely difficult year in 2016, with prices collapsing because of an oversupplied market.

But producer prices have started to improve towards the end of the year and, in its global outlook for 2017, Rabobank - a leading agri-bank - says the improvement should continue next year.

"Dairy prices face support through 2017, from a solid global demand growth and contracting supplies due to low prices and government measures," it says in its report. The European Union has put in place a milk production reduction scheme.

However, whilst it believes that prices will improve in the dairy sector, Rabobank believes that elsewhere prices will remain low.

It says that staple food commodities like wheat and corn are being stored in record volumes. This will weigh on the prices farmers can expect to be paid next year, it says.

Source: UkrAgroConsult

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