Brace for Global Milk Scarcity, New Rabobank Report Predicts

Sep 28, 2012

Tighter Supplies Driving Up Milk Prices Worldwide

Rabobank released a new report - Q3 2012 which examined the global dairy industry looking at supply and demand of key markets. The report finds that global dairy markets are heading into a period of supply scarcity for 2013. The report identified several key factors driving this new development including, low milk prices, high feed costs and extreme weather conditions all being contributors to lower production.

“We fear that much of the market has been lulled into a false sense of security by the phenomenal growth seasons we saw in late 2011 and early 2012 – with the next 12 months likely providing a rude awakening,” the report stated.

Rabobank projects a reduction in exportable surpluses coming from the “Big Seven” export regions – EU, U.S., Australia, New Zealand, Brazil, Argentina and Uruguay to the end of 2012 and first half of 2013. The report concludes that as economies such as China, Southeast Asia, and Middle Eastern/North African countries improve, the demand to buy more dairy will rise.

“The bright light for dairy producers and a fulcrum for recent price recovery on world markets has been the ongoing strength of import demand, and we expect import demand to continue to expand in the coming six months.”

Video: Early Fall Colors | Scenic Ontario Road Trip!

All adventures must come to an end, but not without one more journey! Join The Wandering Shepherds as we say farewell to our cozy Calabogie cottage and take the scenic road trip home to Ewetopia Farms. Our first stop was a breathtaking hydroelectric generating station, framed by cliffs, rushing water, and brilliant fall leaves that seemed to have changed overnight. From there, we meandered along winding backroads through lakes and hills, soaking in the spectacular autumn scenery. This year, the colors seemed to arrive earlier than usual—perhaps due to the summer’s drought? Whatever the reason, it was an unforgettable display of Ontario’s fall beauty. Finally, our holiday drew to a close as we pulled back into Ewetopia Farms, ready to return to the sheep and our daily vlogs. But this trip reminded us how important it is to pause, explore, and appreciate the simple beauty around us.