Analyst urges calm amid disquiet over declines in global dairy prices

Farmers should not read too much negativity into recent declines in global dairy prices, according to analysis by Davy Stockbrokers.

In an equity briefing issued yesterday, Davy analyst John O’Reilly said that recent price declines can be largely explained by short-term oversupply, itself a product of a sustained spell of good weather.

He also noted the month-on-month price dips are in marked contrast with the annual figures. When viewed over a decade, the prices being enjoyed by food producers suggest an even more favourable pattern.