OECD-FAO report predicts new price paradigm for global dairy

摘要

While dairy prices on the world market are not expected to reach the record levels set this year again until 2020, a new joint agricultural outlook report from the Organisation for Economic Cooperation and Development (OECD) and the UN Food and Agriculture Organisation (FAO) is hardly all bad news. This is not least due to the expectation that the world has moved on to a new and higher price plateau (see price charts, page 3). In the short term, however, supply and demand are expected to react to the equilibrating signal given by the high prices, causing the former to contract and the latter to expand, particularly in Oceania. Continued high costs of production will most likely mitigate the resulting easing of prices.