Milk Prices Up Due to Asian Demand


News from Panama / Wednesday, January 15th, 2014

Increased demand from countries such as China has raised prices globally and creates opportunities for dairy exporters in the region.

By 2014 world supply may not be sufficient to meet demand and therefore prices will increase.

From an article by the Costa Rican Foreign Trade Promotion Office (PROCOMER):

International prices for dairy products showed significant increases in the last months of 2013 and will remain at that level during 2014. Tim Hunt, analyst at Rabobank, indicates that it is due to an increase in purchases of large volumes of milk from China after a fall in local production.

In 2011, 2012 and 2013 highly dynamic markets in the consumption of dairy products such as Asia, the Middle East and North Africa had been using surplus stocks in the market resulting from a contraction of demand in regions such as the U.S. and Western Europe, but by 2014 it is expected that the global supply will be insufficient to meet demand and therefore prices will increase.