RaboResearch report: Dairy markets still dealing with demand fluctuations
It will take time to return to pre-coronavirus norms.
Global financial services company Rabobank said milk production is forecasted to continue expanding across the dairy-exporting regions, despite weather-related issues, lower milk prices and efforts to bring supply back in balance with demand in many areas, according to the latest RaboResearch Dairy Quarterly titled “Waiting for the Dust to Settle.”
“The Northern Hemisphere has experienced a rebound in milk and dairy product prices toward the end of [the second quarter of 2020], but it may be too soon to call this a true recovery,” writes Ben Laine, dairy analyst for RaboResearch. “Much of the price support has been driven by government aid that will likely slow in the months ahead. The upcoming U.S. presidential election could extend heightened levels of support in the United States.”