European dairy market slightly more solid
Although milk prices paid by European co-ops entered 2010 slightly lower than 12 months previously, the market is now seen as slightly more solid, due to lower milk supply than expected, and the depreciation of the euro against the dollar – which favours European exporters, and has resulted in demand from big milk powder importers such as Algeria.
Since early December the euro has fallen against the dollar, from $1.51 to $1.35 last week. There are signs of stabilisation in international markets with slight downward movement of prices in Fonterra’s global internet auctions in February and March.
