During the three day IFCN Dairy Conference in Kiel, Germany, milk experts from 45 countries gathered to discuss the global status and perspectives of milk production and milk prices. The hot topic was the record-low milk price.
Torsten Hemme, CEO of IFCN http://www.ifcnnetwork.org/en/start/index.php and host of the conference, stated in his welcome speech: “The world milk price fell below 0.30 USD (i.e. 0.26 EUR)/ per kg of milk (June 2015). This means, we are facing the 3rd crisis within only 8 years. This affects the milk production in every country in the world.”
Key reason for this severe decline of milk prices is the imbalance of world milk supply and demand in 2014. Right now, good weather conditions and also the fact of EU quota removal have pushed milk supply despite low prices. The import ban in Russia and China and market psychology factors play a significant role as well.
Read more here – http://www.ifcndairy.org/media/downloads/Press_Information_EN__IFCNDairy_Conference_2015_dairy.pdf
