Geopolitical instability in Russia and the Middle East is likely to weigh on global demand for dairy products, New Zealand dairy co-operative Fonterra said on Wednesday.
“What worries me … is the geopolitical environment around the world, including Russia, and the Middle East,” Fonterra Chief Executive Officer Theo Spierings told reporters.
“All these regions are importing regions, so from the demand side this will create longer term volatility, and that geopolitical instability is not likely to end soon.”
Earlier in the day, the world’s largest dairy exporter reported a 16 percent fall in first-half profits after inventory margins were squeezed by falling dairy prices.
Source: Reuters
