A
gradual improvement in dairy market conditions in 2016 is expected once
global stocks begin to clear, Lakeland Dairies CEO Michael Hanley has
said.
He made the
comment in his Christmas and New Year message to milk producers.
“Lakeland
Dairies has continued to put in the groundwork required to ensure long term
sustainability and continuing growth and development in an increasingly
globalised and often volatile dairy marketplace.
“This includes
investments in new milk processing capacity, larger scale and an efficiency and
cost reduction programme across all operations,” he said.
Hanley said that
dairy markets have been challenging due to several factors coming into play at
the same time.
“This has
included the abolition of the EU quota system and increased production by
European farmers, the Russian ban on EU dairy products and a global oversupply
from dairy producing countries.
“The major dairy importers and
traders across every continent have taken advantage of lower prices to increase
their stock of dairy products over the past year and this will take some time
to wash through the system.
Overall we anticipate that
there will be a gradual improvement in market conditions once global stocks
begin to clear.
No comments:
Post a Comment