Dairy products near bottom of prices cycle

SOURCES at Fonterra, the world’s biggest dairy exporter, say they are near the bottom of the dairy products price cycle.

World prices dropped steeply in the second half of 2008, as international buyers pulled back in the expectation that prices would decrease. The global economic downturn also hit markets.

The likely result is low milk prices in the peak delivery months of 2009, said Teagasc researcher Thia Hennessy, who indicated the global financial crisis could rule out price improvements before the end of 2009.