Extra milk hits markets

International dairy markets have weakened in line with the seasonal increase in the global milk supply.

“Demand has remained good but exceptionally strong growth in milk production is outpacing demand growth,” said United Dairy Farmers CEO David Dobbin, after the Northern Ireland company’s recent monthly milk auction where there was a 14% increase in the volume of milk on offer for March delivery, and the price fell from 28.15 pence per litre to 27.26ppl.

Price falls are evident in Irish Dairy Board and Dutch Dairy Board reference prices also. But European returns are still well above world butter and powder prices. The global milk supply surge is led by New Zealand, where output is 10% ahead of last year, and dairy product prices are 22% below last year’s level.


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