Global milk supply picks up pace: Rabobank

The global milk supply from main exporting nations is continuing to pick up pace, according to the latest agribusiness report from Rabobank.  The bank said that producers in most regions are beginning to see the benefit of improved farmgate milk prices, lower purchased feed costs and mostly good climate conditions.  “Attention over the next few months will be on the strength of the Northern Hemisphere seasonal peak,” the bank stated. “As it will play a key determinant in the market balance.”  Rabobank noted that the global commodity market remained firm and that in many regions inventory levels were tight. It said that the market is well supported by ongoing strong Chinese purchasing.  In some markets, milk-based espresso drinks represent the large majority of coffee sold out of home. For instance in Australia, 97 per cent of coffee sold out-of-home is milk-based.