Dairy Market News Briefing

It’s a busy day for dairy market news so let’s have a look at some of the stories making headlines.

Firstly, the outbreak of Coronavirus (CoViD19) is being predicted to potentially cause a negative downturn in many world markets including the dairy market. There has been a huge growth in demand for dairy products in China in recent years and the potential size of the market is huge.

The domestic dairy industry in China has seen disruption caused to the supply chain due to the regulations brought in to combat the spread of the virus. There are also fears that there will be a general decrease in demand as a result of CoViD19 which will also impact imports to China. A further issue is that the virus is causing the financial markets to wobble generally causing fears of a downturn for the global economy.

Another story which features the dairy market that is in the news today are the US trade talks in India. India is another growing market for dairy products and there is potential for new US/India trading partnerships as a result of the talks. India is a huge market so US analysts believe that it will take some pressure from reliance on Chinese trade. The recent resumption of trade between the US and China is likely to be negatively impacted by CoVid19.

Finally we look at another headline in the press today that concerns Australia. The Australian dairy industry was deregulated in 2001, but talks are in process to potentially reintroduce a degree of government intervention through the establishment of an independent market operator (IMO) for Western Australia to oversee the industry and set minimum farmgate milk prices.

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