mpo-latest-news-featured image

International milk price recovery possible in 2016

A recovery in international milk prices during 2016 is possible, although the exact timing still remains uncertain. This was the consensus of the 69 dairy experts from 41 countries who recently attended the 17th International Farm Comparison Network (IFCN) Conference in Ghent, Belgium. According to MPO economist Dr Koos Coetzee, who attended the conference as part of the Milk SA Industry Information project, lower milk production resulting from lower producer prices has already led to a slowdown in milk production growth. Production in Southern Hemisphere countries is growing at negative rates. Continued high production growth in the European Union and the high level of both intervention and other stocks are the main factors limiting price increases.

IFCN analysis estimates milk production growth in 2016 at 1,5%, down from 1,8% in 2015 and 3,2% in 2014.  According to Dr Torsten Hemme, founder of the IFCN dairy network, price recovery will depend largely on the actions of the current dairy stock holders.  If they do not release stocks, a recovery before year-end is very likely. However, if stocks are liquidated sooner, the recovery may be postponed until 2017. Click HERE to read the IFCN press release.

(Dr Coetzee’s attendance at the conference was sponsored by Milk SA as part of Milk SA’s industry information project.)

Published on Monday, 20th June 2016 - 10:59

Recent Posts

CHURN YOUR WEEKEND INTO A WEST COAST CHEESE AND WINE FESTIVAL

12 April 2022 Over the weekend of Saturday 23 to Sunday 24 April, the historic Groote Post Wine Estate, world-renowned for its award-winning wines, will play
Read More

HEAVY RAINFALL, ROADS CLOSURES PUT STRAIN ON KZN’S AGRICULTURAL SECTOR

MEDIA RELEASE                                                                                                                   14 April 2022 The exportation of produce and importation of agricultural related goods has been significantly affected by the recent severe weather conditions
Read More

INTERNATIONAL FARMER PRICES AND DAIRY PRODUCT PRICES AT RECORD LEVELS

MPO POINTER 2/8 April 2022 In Europe, the average farmer price of unprocessed milk is up by 20%. Indeed, a new price regime developed after numerous
Read More

FOOT-AND-MOUTH DISEASE BIOSECURITY STRATEGY FOR THE MILK PRODUCER

FOR IMMEDIATE RELEASE | 31 March 2022   Since 1 March 2022, eight new outbreaks have occurred in four South African provinces. Limpopo              2             11 March
Read More

disclaimer