International prices 78% higher than a year ago

International dairy product prices have increased substantially since July 2016. The trade-weighted average price of the global dairy trade increased to 913 at the auction held on 20 September, 78% higher than a year ago and 45% higher than in March 2016. The main reasons for the higher prices are the slowdown in milk production in major exporting countries. Indications are that production growth in the EU is also slowing down. This trend is encouraged by the European Commission’s decision to pay farmers for milk they do not produce.

The trend towards lower production growth and higher product prices is expected to continue. This was the consensus opinion at a recent meeting of dairy experts from the major dairy companies held by the IFCN. To read more, click HERE.