Upturn at last

Milk prices are finally increasing, after years of the doldrums, according to International Farm Comparison Network (IFCN) Monitoring, which notes the world milk price increased by 35% to a level of about US$30 or €27/100 kg milk since June 2016. which is good news, but on the other hand, the IFCN also predicts there will be 40% fewer farms in Western Europe in the next 10 years.

The assembled at a recent meeting, the IFCN Supporter Conference, concluded that the way forward was knowledge and data sharing for more efficient methods of farming and dairying. With one billion people globally involved in dairy, and seven billion consumers being served by dairy, it is a key issue for the planet, never mind just the industry. Getting best practice in place throughout the supply chain is essential if the world’s people will continue to be fed in a low-cost, nutritious manner.

It does not mean that dairy is out of the woods yet. The long downturn has had a pretty large impact on the way most dairies do business, and certain processors are still undergoing a fair amount of turmoil and turnover.

Markets continue to be unstable, and most of the future markets that were predicted a few years ago have not materialised as foreseen. Remember BRIC? Brazil’s in the doldrums, Russia’s not taking EU imports, China is variable at best (and not spending the money it used to), and of the four, India’s doing ok by exporting to Russia. But still has pretty high import tariffs for its dairy products, and so is not exactly a key importing country right now.

In a way, the strange fruit of international success is also this very volatile marketplace. Since dairy is more out in the world, it’s more susceptible to international currents. So let’s enjoy the upswing for a bit, and maybe do a bit of surfing.