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Dairy Market Review - December 2018










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    Journal, magazine, bulletin
    Dairy Market Review: Price and policy update. December 2019 2019
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    The FAO Dairy Price Index recorded 192 points in October, an increase of 9.8 points (5.4 percent) since January, but 83.4 points (30.3 percent) below its peak reached in February 2014. From January to May, the index value rose by 24 percent, but from June to October, the value dropped by 15 percent. Dairy price increases in the first three months in 2019 primarily stemmed from limited export supplies along with strong internal demand in Europe and seasonally tight export availabilities from Oceania. From April to May, international demand for dairy products remained robust, while export supplies were relatively limited due to drought in Oceania, especially Australia, but also dry weather in Europe during the summer. Since June, dairy prices weakened, reflecting a market optimism over possible increases in export supplies from Oceania, mainly New Zealand, in its 2019/20 production season. Milk production in the North and South America was stable, providing stability to international prices. In Europe, prices weakness stemmed from relative inactivity of dairy markets due to summer holidays. Increased export availability further added to price weakness towards September and October.
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    Dairy Market Review - April 2018 2018
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    World milk output reached 811 million tonnes in 2017, 1.4 percent higher than in 2016. Across geographic regions, milk output expanded in Asia, the Americas and Europe; stagnated in Africa; and declined in Oceania. World dairy exports in 2017 reached 71.6 million tonnes, 1.3 percent higher than in 2016. Milk exports from Africa, Central America, Europe and North America increased, but those from Asia, Oceania and South America declined. A key factor that influenced this expansion was the continued rise in import demand from China, United Arab Emirates, Japan, Mexico and Australia that counterbalanced import contractions from elsewhere, especially Egypt, Brazil, the Philippines, the Russian Federation, Saudi Arabia and Indonesia. Increased supplies from the EU, Mexico, Canada and the United States were adequate to cover export shortfalls from some leading exporters, including New Zealand, Argentina, Australia, Belarus, and Uruguay. The average dairy export price in 2017 was up 31 percent from 2016. In the first half of the year, prices remained stable as ample export supplies from the Northern Hemisphere were sufficient to meet import demand. But from May to September 2017 dairy prices strengthened, driven by strong import demand, especially from Asia, reflecting tighter exportable supplies from Oceania, South America and Europe. From September onwards, dairy prices started to weaken as export supplies increased from almost all major producing countries.
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    Journal, magazine, bulletin
    Dairy Market Review - October 2018 2018
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    World milk output is forecast to reach nearly 828 million tonnes in 2018, up 2.1 percent from 2017. This year, milk outputs are anticipated to increase in all major regions, with the largest increase is anticipated in Asia, followed by Europe, North America, and South America. Africa, Oceania and Central America are anticipated to recover from downturns experienced in 2017. In 2018, World dairy exports are forecast to reach 75 million tonnes, up 2.7 percent from the revised export figures for 2017. In 2018, much of the expanded global exports is expected to originate in the Americas and Oceania; stable in Europe and Africa; but to decline in Asia. The FAO Dairy Prices Index averaged 191.5 in September 2018, 6.4 percent higher than the level in January this year. At this level, the index is 14.6 percent below the corresponding month last year, and 30.5 percent below that of the peak it reached in February 2014.

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