Volatility in dairy commodities market set to continue
From July to December 2016, whole milk powder prices rose 73% off a very low base to be at their highest since June 2014. This rise was more about falling supply than growth in demand following a drop in production in New Zealand, Australia and Europe although production has increased in the U.S.
In January 2017 prices have started to slide again with whole milk powder prices down for the last three auctions on the Global Dairy platform.
Without better management of supply on a global scale, milk producers will continue to suffer through boom and bust cycles which destabilize the industry and put jobs at risk.