Seeing The Wood, Not The Trees

摘要

The medium term fortunes of the UK dairy industry now rest on whether the Eurozone economy has mismanaged its financial affairs worse than the UK. This will decide the Euro/Sterling exchange rate and the underlying returns from commodity markets that underpin farm gate prices. Initial indications are that the UK is in a worse position. With enormous public and trade deficits, a crashing housing market, debt enfeebled consumers and the prospects of serious interest rate cuts to ward off deflation, a further flight from Sterling relative to the Euro may be expected.