n The Dairy Mail - Let's get some perspective - : MPO current

Volume 15, Issue 12
  • ISSN : 1561-4301


If viewed in isolation, the current oversupply situation seems to be a disaster for the industry. If viewed in perspective, however, it is clear that we face a short-term situation and that better days will come again.

At the start of 2008, milk processors were still implementing pricing structures that encouraged producers to produce more milk. Since then, the supply / demand situation has worsened to such an extent, that major milk buyers recently announced price reductions of between 20 and 30 cent as of November 2008. The situation changed very quickly, due to changes in the local and international environment that happened at the same time.

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