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Rising Dairy Prices Predicted

Rising Dairy Prices Predicted


U.S.A.Dairy prices have been on the rise recently, and could still rise another 5-10% between now and this summer, says Tim Hunt, Global Dairy Strategist for Rabobank Food & Agribusiness Research and Advisory Group. “…the pricing of dairy will stay higher than it was a few years ago,” he said. US retail dairy prices have already increased 0.7% from January-February, according to the most recent data released by Bureau of Labor Statistics. This is a relative increase, compared with a 0.1% increase for overall urban consumer prices. Click Here to View the Recent Bureau of Labor Statistics Data on Dairy Prices "Prices started pushing higher in the fourth quarter of last year, and that has spilled over into this year," says Jerry Dryer, editor of the Dairy and Food Market Analyst newsletter, according to MarketWatch. If wholesale prices of milk jump, this could impact consumer pricing of all dairy products, including butter, ice cream, cheese. One primary reason given for these price increases is a surge in demand from China. Last year, there was a reduction in Chinese milk supply of about 6%. Additional supply issues include an ongoing drought in New Zealand and slow expansion of cow herds in the United States. CBS News reports that California’s drought increased hay prices, driving higher prices as well. Will the prices of dairy products continue to rise? How will this affect demand and ultimately store income? Stay tuned to DeliMarket TV as we continue to watch for any fluctuation in the change in dairy prices.


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