Correction in the global market continues; milk price follows falling trend of raw material prices

The dairy market in the first quarter of this new year was characterized by turbulence and volatility. The milk price will be corrected with a noticeable delay, says Danielle Duijndam, dairy specialist at Rabobank, in an article about market developments in dairy that was published today. There is talk of a 'mismatch', which currently leads to a correction of the milk price. Not only in the Netherlands, but also in other European countries, dairy farmers can count on falling milk prices. Europe and the United States are showing growth in milk production, which means that, according to Rabobank, the market is moving from a small shortage of milk to a slightly surplus of milk. The new year started in the Netherlands with an increase in milk production, as in January with 4.6 percent. Dutch dairy farmers are in a good position to maintain production as much as possible. The high milk prices, in combination with the mild winter so far, are an incentive for this. Prices for important ...