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.