Dairy down 8.4%

GlobalDairyTrade’s price index dropped 8.4% in this morning’ auction.

Supply and demand rules.

4 Responses to Dairy down 8.4%

  1. Southern says:

    sorry Elle, this is not a case of ‘supply and demand rules’, it is a case of oversupply and demand falls!

  2. Andrei says:

    Maybe this explains it

    Moscow plans to ban all US agricultural products, including poultry, as well as EU fruit and vegetable imports in response to Western sanctions imposed on Russia over the Ukrainian crisis, according to the country’s agricultural watchdog.

    All agricultural goods produced in the US and imported into Russia will be halted for one year, the assistant to the head of Rosselkhoznadzor, Aleksey Alekseyenko, told RIA Novosti.

    The list of banned products will be published on Thursday, he added.

    EU fruits and vegetables also fall under the ban, Alekseyenko added. A source told Itar-Tass that dairy products from the EU will be included on the list, as well.

    “The list includes milk powder, butter and cheese,” the source said, adding that this also includes mass production cheeses.

    For Finland that’s a 400 Million Euro hit

  3. homepaddock says:

    Russia’s plan hasn’t had an impact yet.

    Supply has been increasing in the northern hemisphere in response to rising prices.

    The fall in the price of corn in the USA as shale gas replaces biofuels has made milk production cheaper and boosted supply there too.

  4. Andrei says:

    I guess the impact is yet to be seen.

    I don’t know if we are on the sanctions list , but Australia is and regardless this has to further reduce the GDT.

    Argentina explicitly isn’t sanctioned, you will be interested as an Argentinophile to know 🙂

    Trade war – shale gas

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