GDT drops 6%

03/09/2014

GlobalDairyTrade’s price index took another fall in this morning’s auction:

gdt30914

 

gdt3.914

One of our staff is Dutch and keeps up with news from home on the internet.

He said the Russian boycott of produce was causing a glut of vegetables in Holland. It will also be one of the factors impacting on dairy prices.

Meanwhile Russia will have to spend billions subsidising its farmers.

Russia’s agriculture minister has warned that Moscow must spend billions of dollars in the coming years subsidising farmers in order to avoid a shortage caused by its ban on most Western foods.

Agriculture Minister Nokolai Fyodorov’s stark comments on Wednesday (local time) represented Moscow’s first admission that its decision to strike back at US and EU sanctions with sweeping food bans, including those against Australia, may have long-term costs for both its budget and consumers.

The trade war is part of a broader crisis in East-West relations sparked by Russia’s perceived attempts to split strife-torn Ukraine in two after Kiev’s decision to seek a closer political and economic alliance with Europe.

Russia relies heavily on foreign fruits and vegetables because its long winters and inhospitable climate keep farmers from growing produce desired by the country’s booming middle class.

It also imports huge volumes of Australian and European meat along with US poultry and Norwegian salmon – all banned under Russian President Vladimir Putin’s orders earlier this month. . .

Russia isn’t boycotting our produce but goods not allowed into Russia will be competing with ours elsewhere.


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