Global dairy market may not recover before 2017

Источник: The DairyNews
Global dairy products market is dropping, prices for almost all categories of products continue to fall.

Global dairy products market is dropping, prices for almost all categories of products continue to fall.

The majority of experts traditionally blame Europe, and partially they are right. Farmers do not decrease production, but continue to increase it even having minimal or zero profits. The period of stagnation is lasting for almost two years. It suggests an idea that only cardinal negative changes may adjust the volume of milk supply – like work at a loss, bankruptcy, withdrawn from the market.

Some experts forecast with pessimism market recovery no sooner than 2017, adding that Russia’s return could force this process. There is also positive news – Chinese importers started changing their behavior. It is still not known will the purchase growth become a tendency, but according to statistics in January the prices were as follows: price for WMP reached 120.5 thousand rubles (+52.3% against January 2015), for SMP – 33.5 thousand rubles (+43.2%), for butter – 14.8 thousand rubles (+83%), for powdered whey – 44 thousand rubles (+53.2%), for cheese – 9.8 thousand rubles (+66%).

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