Dairy product prices fell 1.4% at the latest Global Dairy Trade auction which took place earlier today, May 3.
Both the demand for butter and butter prices are falling quicker than the increase of production. This situation was predicted long ago, but it was hard to expect that the decline would be so sharp. Butter price has plummeted 20% last month.
After active exports operations in March, the Belarusian export trade activity has considerably weakened. Russian market got stabilized and price agiotage died down.
Prime news in the dairy market of Russia is the discussions concerning the draft regulation on Modification of Rules for granting subsidies from federal budget to the regional budgets.
The sixth Global Dairy Trade auction of the year has posted a drop in dairy product prices of 2.9%.
The European Commission announced today a second package of exceptional measures to try and solve the deepening crisis in the Dairy and pigmeat sectors.
Forecasts on the redirection of milk from production of cheeses to butter and milk powder production came true only partially in 2015.
The FAO Food Price Index fell in January, slipping 1.9% below its level in the last month of 2015 as prices for all of the commodities it tracks fell, particularly for sugar.
Exporters have probably accepted already the Russian food embargo. Most likely the Ukrainian dairy products will not be supplied there (in Russia) soon.
There are many unsolved problems in milk production and processing, in prospects of foreign trade.