Arla refuses to issue 2015 forecast amid volatility
The Danish co-op said issuing a forecast for farmgate prices for the end of this year was impossible in the present market conditions.
It said the downturn is a product of increased milk output, falling demand in China, along with Russia’s embargo on imports from Western countries.
Arla chief executive, Peder Tuborgh, said: “The global dairy industry has never been as unpredictable as it is now. The global market prices are affected mainly by the stop in demand from China and the Russian embargo flooding the markets with excess milk.”
He described 2014 as a “a rollercoaster year for the global dairy industry”. Arla’s refusal to forecast comes despite its earnings rising 7% to €320m.
