New RaboResearch report details coronavirus impact on global dairy
The combination of reduced Chinese imports, significant supply chain disruptions and rising dairy surpluses in export regions will keep downward pressure on global markets through much of 2020.
Global financial services company Rabobank said the upward trajectory in global dairy product prices visible in quarter-four 2019, stalled in quarter-four 2020. The onset of the coronavirus in China and the permeation across the globe have buyers and sellers scrambling to assess the market impact, according to the latest RaboResearch Dairy Quarterly, titled “The Corona Hangover”.
“Global dairy commodity prices have already priced-in the uncertainty,” stated Michael Harvey, RaboResearch senior dairy analyst. “But a less-than-favorable expected finish to the New Zealand production season is providing some price support.”