Global prices increase

The decrease in milk production in many leading dairy-producing countries was a major reason for increases in dairy product prices at the last two Global dairy trade (Gdt) sales. Prices increased by 6,6% at the Gdt sale held on 2 August and again by 12,7% on 16 August. Recent reports show that milk production in the European Union is falling much faster than expected, with June production down 2,1% on last year and further decreases evident in July. In the Southern Hemisphere production decreased sharply compared to that of 2015. New Zealand production was down 0,5% in the first quarter, Australia 4,4% and Uruguay 10,5%.  Lower global production will in the future, result in more pressure on product and also on producer prices globally. To read more, click HERE.