Global giving up milk product offer - price stabilization trends visible

Declining range of milk products from leading exporting countries

Middle of the year 2013 sparked a supply deficit in the global dairy sector as a result of a significant decline in supply from a strong price pressures, lasted until early 2014.  At the same time, a stable demand from China fueled international import trade . The resulting high price level in conjunction with a favorable supply situation at the feed drive milk production worldwide vigorously in the height.

In the first half of 2014 the Chinese import demand moving always still just above last year's level, so that the variety of activities could be absorbed initially. Not until the middle of the year Chinese imports owing to sufficient stock warehouses and economically due decreasing purchasing power declined and fell in the second half of the year below prior-year 2013혼다

The resulting worldwide oversupply pushed on the prices.  Judging by the results of the auction of global dairy trade were the courses at the international level by around 50%. The price drop in Europe was comparatively moderate 30% price drop...

The fancy international prices not missed their effect. The dominance of the global supply of milk products to end goneis at the beginning of the second half of the year 2014. In the 10 leading exporters the global growth rate of over 5% fell in the summer months 2014 to below 3% in the last quarter.

The biggest shares in the offer changes have the EU States with nearly 50%, United States with 20-30% and New Zealand with 15 to 25%. The last figures are attributed to the two territories, United States and EU, while in the other locations of production stagnation and declines were observed in December 2014.  Especially New Zealand as the world's largest exporter has set back considerably. Reasons are almost halved producer prices and drought-related bottlenecks in the food supply.

In the EU provides for the last time the quotas for a sharp brake in the delivery of the milk at the beginning of the calendar year 2015, because high penalty charges are threatening.  

In the United States have only significant price declines to the year 2014/15 to a noticeable reduction of the production rise contributed.

Overall the tendency of the development of a range there is increasingly adapted to the subdued demand.  

The price of cyclical adjustment processes are effective on the supply side in full extent. A lower price level can contribute to an increase of consumption already in the foreseeable price-elastic demand in emerging markets with import requirements.  The global dairy market is increasingly in the balance and light reveals at the end of the tunnel by 2015.

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