Global dairy price retreat warning

FALLING demand for dairy products in major importer countries has been highlighted in first half results for Danone, the world’s biggest yoghurt-maker.

Importer demand was significantly slower in China and Russia (sales at Danone’s Moscow-based joint venture slumped by 11.2% in the April-to-June period, as high prices depressed demand).

National Australia Bank analysts said the trend could accelerate the decline in global dairy product prices, and solid spring production expectations in New Zealand and Australia could trigger a sharp price retreat as early as next month.