FDBusiness.com

Global Dairy Demand Fragile But Growing, According to Rabobank

 Breaking News
  • UK Grocery Prices Rising at Fastest Rate in Four Years The latest grocery market share figures from Kantar Worldpanel, for the 12 weeks to 5 November 2017, show UK supermarket sales have increased in value by 3.2% year-on-year in the run up to Christmas. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, explains: “Volume sales have increased by less than 1%, meaning it’s [...]...
  • Alcohol Minimum Unit Pricing to Go Ahead in Scotland The UK Supreme Court has ruled that minimum unit pricing for alcohol, which was passed overwhelmingly by the Scottish Parliament in 2012, can now proceed. Scottish Health Secretary Shona Robison has welcomed the decision and confirmed she intends to make a statement to Parliament shortly, setting out the Scottish Government’s next steps. Following the unequivocal backing [...]...
  • GEA Brings Together Technologies to Supply Extended Production Line For BMI GEA has recently been selected to supply an extended pasta filata cheese production line for BMI in Jessen, Germany. With this exemplary project GEA brings together its joint cheese-making expertise, resulting from its acquisition of de Klokslag and CMT in 2014 and 2015 respectively, with GEA’s flow and processing experience to provide a single offering for this [...]...
  • Bosch Packaging Technology Wins German Design Award 2018 The Sigpack VPF (Vertical Platform for Flat Pouches), the first freely scalable flat pouch machine from Bosch, has been honoured with the German Design Award 2018 in the Excellent Product Design category. The German Design Council presents the prestigious award on an annual basis. The German Design Award is the second prestigious accolade for the [...]...
  • Premier Foods Returns to Revenue Growth Premier Foods, the UK convenience food group, has reported group revenue of £353.3 million for the 26 weeks ended 30 September 2017 – an increase of 1.5% on the prior period – with Branded revenue in line with last year at £295.4 million while Non-branded revenue increased by 10.1% to £57.9 million. Group reported half year [...]...

Global Dairy Demand Fragile But Growing, According to Rabobank

Global Dairy Demand Fragile But Growing, According to Rabobank
April 19
16:36 2016

The global dairy market outlook will remain weak throughout 2016, but with more upward pressure on prices as we head into 2017, according to the Rabobank Global Dairy Quarterly Q1 2016 report.

Global dairy commodity US dollar prices have continued to stumble along a market floor largely determined by the level of EU intervention support. The short-term outlook remains pessimistic. In the face of a cripplingly long price trough entering 2016, production growth in the world’s milk production regions has continued to slow.

“Looking forward, the news is by no means all bad for the dairy industry”, says Kevin Bellamy, Rabobank’s Global Dairy Strategist. “With the exception of Brazil – gripped by the worst recession in a generation – Rabobank sees dairy consumption continuing to grow in Asia, as well as in the US and EU.” Rabobank expects that, throughout 2016, slowing production growth will be matched by slow, but steady consumption growth in most main export regions.

RabobankLogoRegional Outlook

* In Europe, low farmgate prices will mean production growth will slow as farmers focus more on cost-saving than expansion. However, while European production growth will moderate, production levels will not fall, requiring the world market to find a new pricing balance.

* The 2015/16 season production in NZ will be higher than expected due to increased summer rainfall.

* US farmgate prices are likely to move down in response to weakening trade balance and growth in inventories.

* Worse-than-expected production in 2H 2015 has led Rabobank to cut its China production forecast for 2016.

* Production continues to contract in Argentina and Brazil, as very high feed costs keep farmers’ margins under intense pressure.

* The current season will be mostly break-even for Australian producers, while margins will also be tight.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 28, 2017Fi Europe
  • December 4, 2017Plastics and Paper in Contact with Foodstuffs 2017
  • January 8, 2018RAI Exhibition
  • January 16, 2018Sival Plant Production Trade Show
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements