The prices of butter, milk, and cheese dropped sharply as the global supply increased sharply.

According to a report released on Thursday by Rabobank, Emma Higgins, a senior agricultural analyst for the bank, said: "The volume of milk entering the market is too large, along with the sharp increase in the dry matter content in milk, which has contributed to the steep decline in dairy product prices." She described the current production increase as "astonishing." Global milk production is increasing rapidly in key exporting countries. Farmers in New Zealand have set new monthly records for milk dry matter production from May to September; October recorded the third-highest level in history, according to the report. The European Union (EU), the United Kingdom, the United States, and South America have also achieved strong growth. This means that the supply has already exceeded demand, according to Miles Hurrell, Chief Executive Officer of Fonterra Co-operative Group, in a statement made on the eve of the co-operative's annual meeting on Thursday. Rabobank said in its Global ...