Global dairy product prices yet to stabilise since February dip in trade

GLOBAL dairy product buyers are still searching for a better-balanced price, said the Dutch Dairy Board in its market assessment last week.

The market turned at the end of February and is still trending lower. The price decline has been greatest for milk powder, but butter prices have also come under pressure, with more international buyers becoming reluctant to make purchases at current high prices.

The impact that high dairy prices can have on demand in some markets, as well as on supply growth around the world, must not be neglected, according to the Dutch Dairy Board report. “As prices continue to climb, the possibility of a downward correction can increase.”