Rabobank predicts dairy recovery in 2016

Published 24 August 15

Dairy prices will start to recover by the middle of 2016, according to a new report by Rabobank. The bank predicts that a supply side adjustment in the EU and US, and accelerated dairy consumption will help to deplete current stocks, tightening the global market for dairy in 2016. This view is supported by the US Dairy Export Council who is forecasting the market not to tighten significantly before the second half of 2016.

The report also highlights that the New Zealand dairy sector has been the hardest hit by the global downturn in dairy prices. This is attributed to a relatively strong NZ currency position and the country’s exposure to developments in China.