The positive signs include:-
1. News from New Zealand that they are lowering their production forecast on the back of drier weather conditions.
2. Latest Global Dairy Trade auction prices up 9%.
3. Four consecutive positive GDT auctions.
4. Despite another round of prices cuts by some of the big processors, some guarantees of no further changes until the summer have been given. This indicates at degree of stability. (Perhaps a bottoming out?)
5. Talks and cease fire in Russia.
Whilst this is all good news, until more convincing signs of recovery are seen, dairy farmers continue to cut costs, wherever possible, whilst supplying a world class, healthy product to the public’s tables. Amongst the back drop of loss leading marketing campaigns by the retailers placing it now cheaper than bottled water, the industry remains a challenge for many.
A note of caution however. The UK market sits on the brink of the spring flush and the forthcoming removal of milk quotas. Together this could bring further over supply to the market.
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