Market trends that will affect the dairy industry are illustrated in the October 2014 issue of the MPO’s Key Market Signals, which was recently distributed to MPO members and interested parties. While milk production show an increasing trend during the last two months, total production for the first nine months is still only 0,9% above production during the same period last year. This, along with positive growth in the formal market and exports that exceed imports, have resulted in undersupply on the local market. South African producer prices are steady and no decrease is expected during the coming summer.
Total imports are higher than last year. International dairy prices decreased sharply since the beginning of 2014. The main reasons for this are the sharp increase in production caused by high producer prices in exporting countries, more favourable grain prices and better climatic conditions. Lower international prices have already resulted in lower producer prices in exporting countries. Expectations are that this may result in lower production and an increase in global prices.
The latest copy of Key Market Signals is available for download on the MPO website – click HERE.
Published on Monday, 3rd November 2014 - 09:14
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