Downward pressure on Milk Price
Milk prices are taking a downward spiral because of increased milk production in some of the major milk producing countries around the world. India for example was a net importer of milk products up to last year and now is a net exporter. Milk supplies have increased by 9% in New Zealand and over 3% in America. In addition, water reservoirs have been replenished in Australia which will result in an upward supply of milk in the year ahead. It is noteworthy that each 1% increase in milk production in America is equivalent to our national quota.