Dairy prices are unlikely to fall significantly

FUNDAMENTAL forces in the international market for dairy commodities that drove 2007 prices up remain in place, according to the Dutch Dairy Board.

The Board says prices are unlikely to fall significantly while a shortfall in the supply of dairy products on the world market relative to potential demand continues.

In its monthly milk price comparison for 17 milk buyers across the EU, most dairy companies have lowered milk prices from January to February, but prices remained 33.9% ahead of February 2007.