Falling China demand sees dairy prices fall by 10% in three months

Falling demand for milk in China and a rise in output in the world’s leading dairy exporters caused dairy prices to fall by 10% to 20% in the three months to mid-June, according to Rabobank’s ‘Dairy Quarterly Q2 — Beyond the tipping point’.

“Unfortunately for sellers, it looks like Chinese buyers may have bought considerably ahead of their requirements in 1H 2014,” states the report.

“Frenetic import buying by processors in the opening four months of the year left local players with a significant stock accumulation by April.