Milk market amid hopes and confidence

FONTERRA of New Zealand sees improvement in the milk market - production goes back - China and South America increased imports.

The New Zealand dairy FONTERRA assumes that the milk production in their own country by 3.3% will fall. Smaller herds and even less feed use have helped.

At the world level , production should stabilize 2016. In the United States, it was on the way. However the deliveries show still considerable increases to 5% in the EU's largest production area in the month of Jan. 16, year expects an increase of 1%.

China's import demand until Feb.. 2016 is increased by 6%. New Zealand's exports have risen to China by 14%, with children's nutrition by 38%.

You drove a South America will be while the Middle East due to the low crude oil prices reach only a 1% increase in estimated on 10% increase.

New Zealand optimism can be shared yet in the EU. Here, the next months with seasonal high delivery volumes are imminent.

While the intervention for MMP has been taken once claimed. The purchase price of approximately €170 / MMP was exceeded in the vast majority of the EU Member States. There were 122,000 t MMP in State intervention stock as of April 24, 2016. More 40,000 t are located in private storage.

In the case of butter , the intervention price is €222 / t, the market prices but at €250 / t. There is therefore a mandatory intervention still not taken into consideration. However, butter is stored within the framework of private storage (PLH) already. Larger amounts of cheese inside the PLH action.

As long as accumulated surpluses of dairy products in the EU State warehouses and not degraded, is for the time being a basic price improvement unlikely to occur.  Possibly, the situation looks better in autumn 2016.

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