A positive outlook until June, and some degree of hopeful optimism for the second half of the season, was reported by the Irish Cooperative Organisation Society among global dairy trade analysts this week.
Very little evidence of demand burn-off as a result of high prices favours continuing market buoyancy. The co-ops’ umbrella organisation says strong milk production around Europe is putting some downward pressure on butter prices, but protein and cheese prices are reported to be holding.
January milk production is reported nearly 8% up on a three-year average in the UK, and more than 5% ahead of 2013 in France. But the US supply trend is flat, less than 1% ahead for the first 10 months of 2013, and Australian production fell 5.4% for the first 11 months of 2013, and continues to fall. “New Zealand’s current growth of 4.8% should be seen against a 2.4% drop for the first 11 months of last year,” the current ICOS bulletin says.
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