All the market signals are pointing towards a shift upwards on milk price, according to Torsten Hemme from the IFCN World Network. Hemme is the managing director of the Dairy Research Network in Germany. He was speaking at a global dairy industry conference in London on Thursday.
The German’s assumptions are based on the fact that the key drivers of milk price are supply and demand and right now supply is not strong. He said: “Let me summarise: supply is very weak, dairy stocks in storage are low, and I’m surprised that future markets are so relaxed. I would have expected them to see what is coming, which I think is demand outstripping supply and that normally brings higher milk prices.”
Hemme went on to explain that the milk supply growth in New Zealand this year (where farmers are drying off cows) is less than was expected, the US is increasing milk produced, but only when you account for the increasing milk solids, and both Russia and China are going down in terms of milk supply.
Other speakers at the conference included Jim Bergin, Glanbia, Michael Dykes, US, Eric Meyer, US, Jukka Likitalo, Brussels, and James Neville from Volac. The conference continues on Friday.
Read more
Milk prices: PPI recovers in April
Fonterra’s March milk collections down 8% on last year
Dairy markets: Chinese dairy imports continue double-digit growth
All the market signals are pointing towards a shift upwards on milk price, according to Torsten Hemme from the IFCN World Network. Hemme is the managing director of the Dairy Research Network in Germany. He was speaking at a global dairy industry conference in London on Thursday.
The German’s assumptions are based on the fact that the key drivers of milk price are supply and demand and right now supply is not strong. He said: “Let me summarise: supply is very weak, dairy stocks in storage are low, and I’m surprised that future markets are so relaxed. I would have expected them to see what is coming, which I think is demand outstripping supply and that normally brings higher milk prices.”
Hemme went on to explain that the milk supply growth in New Zealand this year (where farmers are drying off cows) is less than was expected, the US is increasing milk produced, but only when you account for the increasing milk solids, and both Russia and China are going down in terms of milk supply.
Other speakers at the conference included Jim Bergin, Glanbia, Michael Dykes, US, Eric Meyer, US, Jukka Likitalo, Brussels, and James Neville from Volac. The conference continues on Friday.
Read more
Milk prices: PPI recovers in April
Fonterra’s March milk collections down 8% on last year
Dairy markets: Chinese dairy imports continue double-digit growth
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