Rabobank expects global price pressure on dairy products

The risk of falling prices on the world market for dairy products is likely to increase in the coming year if China's import demand, which is expected to continue to decline in the short term, is not offset by other importing countries in the medium term. At least that is what the Rabobank assumes in a recent study. According to this, the production of dairy products in the “Middle Kingdom” has been throttled since the first quarter of 2021, which, according to the bank, indicates a decline in demand as well. In July, consumption only exceeded the level of the same month last year by 0.3%. The causes cited include regional lockdowns due to the corona pandemic as well as heavy rain and flooding. In addition, the spending of Chinese consumers in the food service has fallen noticeably since the second quarter of 2021. According to the Dutch analysts, milk production in China increased by 7.6% in the first half of 2021 compared to the same period of the previous year. The increase in ...