Milk market expected to improve in 2016

Global milk prices, depressed by oversupply, should start to pick up at the beginning of 2016 partly because supply in China will ease, says the head of one of Europe’s biggest dairy companies, Arla Foods.

The price of whole milk powder has fallen 53% since the start of 2014, owing to a food import ban in Russia, slowing economic growth in China and the termination of the quota system in Europe. China and Russia imported 28% of global milk production last year but their intake has fallen to around 10% this year.

Peder Tuborgh, chief executive of Arla, expects that China, the world’s biggest importer of dry whole milk, will need to increase its imports again at the start of next year as its stocks will be depleted by then. To read more, click HERE.