Insight Into World Supply & Demand Factors That Influence Milk Price
Milk seems to be turning into one of the most volatile agriculture commodities of modern times. There are 3 major reasons for this phenomenon. The first is the changes in the quantities of milk available internationally and their effect on world market prices. The second is the amount of time it takes to increase milk production as a result of change, and finally the delayed reaction of the demand to changing dairy commodity prices. Another important determinant of milk price is feed availability (and hence cost). Feed costs increase, leading to cost of production increase, and indirectly land prices increase. …