Exporting countries farmgate prices hit hardest

Published 31 July 15

As is well known, farmgate prices across the world have decreased following the sharp fall in wholesale prices that is due to the global supply/demand imbalance. However, it’s clear that prices in some countries have been hit worse than others.

Those involved more in exports have experienced a larger fall in prices due to their greater dependency on the world market. The most noticeable fall was in NZ, where average milk prices have halved between May 14 and May 15.

Average prices in the EU for June were hovering just over the 20ppl mark. However, prices are still under pressure. This has recently been seen with price cut announcements from Arla, FrieslandCampina and others coming into effect from August.

Global farmgate price 31.07.15