Analysts
expect dairy prices to improve at this Wednesday's Global Dairy Trade auction after wet weather hampered the start of the peak months for milk production.
Not exact matches
Farmers operating under supply - management boards in the Canadian
dairy, chicken and other protected agricultural sectors can be
expected to offer justifications for the market power that enables them to sell their wares at
prices substantially higher than in most other countries.
Fonterra Cooperative Group Ltd., the world's biggest
dairy exporter,
expects global milk
prices to recover from their slump as China re-enters the market, Chief Executive Officer Theo Spierings said.
«The continued expansion of world demand, resulting from global population and economic growth and increasing preference for
dairy products are
expected to be the main drivers, fuelling EU exports and sustaining commodity
prices,» said the EC report.
If Murray Goulburn cuts the farm gate
price, other milk processors are
expected to follow, given the co-operative's position as a
price setter in the market and recent comments from its competitors that this season's
price did not reflect global
dairy conditions.
But he warned that could slide to $ 5.60 - $ 5.90 a kilogram if global
prices for key
dairy commodities did not improve as
expected.
This compares with its prospectus forecast of $ 89 million, and previous warnings to investors that its net profit would be between $ 66 million and $ 86 million if global
dairy prices didn't recover as
expected.
Global
dairy prices have fallen around 60 per cent since early 2014, mainly because of weaker demand from China after it stockpiled milk powder, and most analysts
expect milk
prices to stay low for some time.
This compared with its prospectus forecast of $ 89 million, and previous warnings to investors that its net profit would be between $ 66 million and $ 86 million if global
dairy prices didn't recover as
expected.
«It is still early in the season, and we
expect continuing volatility as reflected in
price improvements in recent Global
Dairy Trade auctions.
«The Australian
dairy industry has to get real about milk
prices and find ways to adjust to the new lower milk
price environment that we
expect is likely to continue next season.»
Some pressure is still
expected to build on global commodity
prices in this year's second quarter, in line with the northern hemisphere milk peak, Rabobank's latest
dairy quarterly says.
Fonterra chief executive Theo Spierings
expects global
dairy prices will start to lift later this year.
Major
dairying and juice communities, including those in in Bega, Wagga Wagga, Bathurst, Dubbo, Tamworth and Murrumbidgee are also
expected to be affected by falling demand, caused by higher
prices at the checkout and should not be threatened by another green tax adding unnecessary cost to their products.
Attendees can
expect to walk away with an appreciation of the key factors governing
dairy ingredients
pricing, supply and demand, as well as an appreciation of the science and technology to transform milk and whey into value - added
dairy ingredients.
Dairy prices are
expected to largely track sideways before drifting higher later in the year, ASB senior rural economist Nathan Penny says.
With the improved outlook for
dairy prices we
expect strong interest in these,» he said.
Mr Joyce plans to visit Shepparton in Victoria on Wednesday to speak to farmers and quell growing anger over
price cuts, and is
expected to visit Pactum
Dairy Group in the area.
Victorian
dairy co-operative Murray Goulburn said in December that due to the strong international demand for
dairy products, it
expects to pay a milk
price of between $ 6.30 and $ 6.50 per kilogram of milk solids this year.
Global
dairy prices have fallen around 60 per cent since early 2014, mainly due to weaker demand from China after it stockpiled milk powder, and most analysts
expect milk
prices to stay low for some time.
«It is very pleasing to see however the latest Fonterra milk
price at $ 6 which is 14 per cent up this period and at $ 6 basically the
dairy farms are above their break - even point so we do
expect to see less stress in
dairy going forward.»
The newsletter didn't provide forecasts of how far Fonterra
expects dairy commodity
prices to fall.
Despite an
expected recovery in the
price of
dairy ingredients, significant
price swings are still
expected, according to a new report from Rabobank.
The
price of
dairy products across the globe are
expected to rise moderately over the course of the next few months due to the prolonged drought in Australia.
An
expected increase in global
dairy production is unlikely to alleviate current industry concerns over high milk
prices, according to findings by the US Department of Agriculture (USDA).
As supply increases from producers in the Southern hemisphere and demand growth slows the currently high global
dairy prices are
expected to ease somewhat, according to market analysts.
Drought in New Zealand and continued strong buying from Russia and China are
expected to keep international
dairy commodity
prices buoyant in early 2011, according to Rabobank.
Murray Goulburn's decision to offer
dairy farmers a lower - than -
expected milk
price has set the scene for a major upheaval of the
dairy industry, as rival processors weigh up whether to break ranks and exact further pain on the besieged co-operative by offering a higher
price.
A University of Wisconsin
dairy economist says milk
prices are improving as
expected, but changes in NAFTA might end that trend.
The German
Dairy Industry Association (MIV)
expects a decline in milk producer
prices in Germany for the first quarter of 2018, but do not dare to give a forecast on the further development of producer
prices beyond the first quarter.
Meat
prices, which rose five per cent last year, are
expected to increase up to another 4.5 per cent in 2016; fish and seafood could rise by up to three per cent; and
dairy, eggs and grains could see a two per cent increase.
According to the company's SEC filings, food
price increases during 2013 have made them more wary of the effects of global warming on their food, and the company
expects there to be «additional
pricing pressures on some of those ingredients, including avocados, beef,
dairy and chicken during 2014.»