World dairy markets experiencing upswing

WORLDWIDE – World dairy markets enjoyed an improved second half of 2003 as international dairy prices resumed their upward swing, according the United States Department of Agricluture’s (USDA) Foreign Agricultural Service (FAS).

The trend is also set to continue into 2004 according to the FAS’s paper, ‘Dairy: World Markets and Trade’. The improvement was down to three main factors, the first of which was that economic recovery in the USA has gathered momentum, having a knock-on effect an Asian economies and helping intercontinental trade.

Secondly, despite Australian milk production for the current season recovering from last year’s droughts, production is still well below 2001/2002 levels. This has lowered Australian export volumes and reduced the number of dairy products on the world market.

Finally, the FAS said, the dollar value against major currencies, and in particular the euro, has fallen significantly thus accelerating the increase in global prices.