World milk price recovery

The world milk price has increased by 35% to a level of around $30(€27)/100kg milk since June 2016, according to the IFCN Monitoring. After two years of lows in milk pay out, world production is finally decreasing.

Latest projections confirm that currently world milk demand is growing faster than the supply in 2016 and 2017. Torsten Hemme, managing director of IFCN, says at the annual IFCN Supporter Conference, “Further price increases are a logical consequence unless any major dairy demand crisis arises.”

The conference focused on the questions: “What is the future of dairy dairy farming systems?” In workshops, the agribusiness partners came to the result that among the sustainable areas of the farms, economic considerations represent the most limiting factor of growth, compared to social, environmental and risk factors.

Furthermore, the representatives of the dairy industry held a common view that sharing of knowledge and data is the way forward for them to work together. Only with solid data it is possible to develop new techniques and solutions for dairy farms that will be fit for the future and ensure that milk supply meets the increasing future milk demand, IFCN notes.