A strong bounce in global dairy prices suggests that dairy might finally be starting to recover, according to global market analysts.
A Global Dairy Trade auction held in the early hours of Wednesday morning showed dairy prices rose 6.6% to an average of $2,436 (€2,175) per tonne with whole milk powder surging 9.9% to an average of $2,265 (€2,022). The gain was the most since October 2015, according to a Reuters report.
“Dairy commodity markets are waking up to the fact that global milk production is slowing,” said AgriHQ dairy analyst Susan Kilsby.
Lower returns stem from the strong growth of EU milk production while growing US output made less of a dent on global trade as it is mainly consumed domestically.
“It feels like we’ve turned a corner, but I don’t want to get my hopes up just yet,” said Andrew Hoggard of the Federated Farmers group.
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