Global milk markets could see coronavirus impacts through 2020
A dairy economist says the coronavirus could cut global milk prices by at least six percent over the next year.
Nate Donnay with INTL-FCStone says supply-side issues that have developed this year have dropped his initial forecast for 2020 by about four percent.
“It’s being partially offset by the poor weather in New Zealand, although production in the U.S. and Europe seems to be running a bit strong short-term here.”
He says the more the virus spreads, especially in Europe and the U.S., the more likely dairy markets will suffer.
Dairy Farmers of America this past week announced they are postponing their annual meeting which was scheduled to take place in mid-March in Kansas City as coronavirus concerns increase.
Donnay’s weekly forecast