markets down
April 6, 2016

U.S. Farmgate Milk Prices to Continue Declining Analysts Say

 |  By: Anna-Lisa Laca

Global milk prices will improve, but not likely in 2016, according to the Rabobank Global Dairy Quarterly Q1 2016 report. Rabobank expects upward price pressure to begin going into 2017.

In the meantime, there’s more pain ahead for U.S. producers. According the report, “U.S. prices are likely to move down in response to weakening trade balance and growth in inventories.”

“Looking forward, the news is by no means all bad for the dairy industry”, says Kevin Bellamy, Rabobank’s Global Dairy Strategist. “With the exception of Brazil—gripped by the worst recession in a generation—Rabobank sees dairy consumption continuing to grow in Asia, as well as in the U.S. and EU.”

Rabobank expects that slowed production growth and increasing demand growth throughout 2016 could lead to improved prices in 2017.