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U.S. dairy prices showing strongest rebound from COVID-19
A dairy analyst with RaboResearch says global dairy prices during the coronavirus pandemic have shown extreme volatility but U.S. markets have rebounded faster than any other country.
“We saw cheese prices drop down to historical lows, near $1, and then pretty quickly within a couple of weeks ended setting record highs up in the $2.50 plus range.”
Ben Laine tells Brownfield foodservice in the U.S. preparing to reopen along with stay home orders lifting and government purchases were the main reasons for record-high prices.
“A lot of this just came together at the same time and really shot prices up pretty substantially.”
He says with economies globally impacted by COVID-19, stocks of dairy products will start to build and that, along with reduced demand growth, is expected to weigh on prices through 2021.
RaboResearch’s second-quarter global dairy report calls for markets to rebound over the next three months with milk prices in the $18 range but weaken in the fourth quarter.
