In January-May, milk production in the world increased by 1.1%
IFCN forecast for 2020 is as follows: growth in milk production +1.4% (+10.5 million tons of milk and in 2021 growth + 1.9% or + 15 million tons of milk), demand growth +1.2% (that is, it will slow down, but still not fall), the price of milk 31-34 dollars per 100 kg. That is, the excess of milk on the market will be about 2 million tons, that is, the difference between production and consumption, which will go into stocks.
At the moment, a significant drop in milk prices was observed according to IFCN data only in some regions, for example, in the United States, milk prices fell by 29% in May 2020 compared to February 2020, in India - by 19%, writes The DairyNews.
There are also more pessimistic forecasts, Rabobank predicts the price of milk in the next 12 months at the level of 25-27 dollars per 100 kg, the Agency FC Stone predicts a decrease in the price to 27 dollars per 100 kg in the third quarter of 2020, but Fonterra gives a wide range of 26-33 dollars per 100 kg.
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