Covid-19 ends global dairy price momentum

Rabobank anticipates China’s consumer buying patterns to normalise in the second half of 2020.

Reduced Chinese imports, significant supply chain disruptions (including extreme competition for shipping containers across the globe) and rising dairy production in export regions, will keep downward pressure on global dairy markets through much of 2020, warned market analysts at Rabobank this week.

“But a less-than-favourable expected finish to the New Zealand production season is providing some price support,” said Michael Harvey, RaboResearch Senior Dairy Analyst. New Zealand’s annual dairy export revenue has been revised downwards by €211 million, mainly due to hot and dry farm conditions.