Currency markets key to milk prices

DAIRY farmers hoping for milk prices to upturn have been advised to keep an eye on the currency markets. Sources at the Dutch Dairy Board warned that the fast-declining US dollar makes EU dairy exports less competitive.

With the US reactivating its dairy export incentive programme to subsidise exports, there could be new downward pressure on prices.

Dairy markets are described as “stabilised”, but with little room for upward potential, as intervention rules the EU market. Some 170,000 tons of butter and 185,000 tons of skimmed milk powder have been removed from the market.