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Latest headlines

Milk prices to fall in the coming season

By Jeremy Gerrard
Pediatricians say pregnant women and children should not drink raw milk
May 29, 2014

Milk prices to fall in the coming seasonAs the price of milk reached record highs earlier this year, dairy exporter Fonterra announced it expects a sharp decline in cost saying there is more milk available for the international market to absorb.

“Dairy commodity prices have come off the peak reached in early February this year, as global supply and demand have rebalanced,” said Theo Spierings, chief executive of Fonterra.

Fonterra said it expects to pay seven New Zealand dollars per kilogram for the 2014-15 season.

Fonterra experts said demand in China is expected to remain strong while there is pressure in Russia to balance between imports and local production.

The Wall Street Journal attributed falling prices to dairy producers racing to ramp up exports to the Chinese market leaving more supply available. The Journal reported the drop is also in part because of milk powder stockpiles in China.

KEYWORDS: dairy industry dairy products food production global economy global markets

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Jeremy Gerrard was Food Engineering's Digital/Online Editor. He is a graduate of Auburn University with a degree in journalism. His previous work experience includes years spent as a reporter with the Daily Local News out of Chester County, PA. In addition to writing feature articles for Food Engineering, Jeremy covered the Dry Processing, Field Reports and People and Industry news sections.

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