GLOBAL DAIRY FWD PRICE ASSESSMENT – April 15th, 2022

OBSERVATION

COMMENTARY

While visible dairy markets appear unaffected by the UKR-Russia conflict, we think dairy will be impacted by the knock-on effects of the financial /commercial contagion surrounding the calorific deficit in economies dependent on the UKR breadbasket and will reflect in the reconfiguration of edible calorific trade routes based upon purchasing power of destination markets that rely on grain imports.
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YoY Feb.2022 Raw milk production is declining in major areas pushing prices up
– New Zealand -8.2%
– Australia -6.1%
– USA -1%
– UK -2.3%.
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Global forward prices for Butter and Non Solid Fats over the period May-Aug 2022 have peaked to highest level ever.
Markets are expected to remain firm ove the next months, then