Dairy sector under pressure

Dairy sector in crisis - factors including global milk glut, reduced Chinese milk powder imports, a Russian cheese & butter ban and low oil prices have all depressed dairy commodity prices to an extent not seen for years. With producer prices low and declining, and commodity prices going down no one is happy. Intervention and PSA have been going up, and buyers take note...With the EU spring campaign about to start, expectations of strong milk supply may just make things worse while demand remains disappointing. It's hard to see prices rebounding before the end of 2016...but a number of people still hope to see European & UK/ROI producers start to gradually cut milk deliveries to support prices going forward. In the meantime the GDT is down again and traded volumes lower.