The year 2020 came to an End and we want to sum up this difficult year.
The COVID-19 pandemic did not show a big impact on the IFCN World Milk Price Indicator.
Main driver is good internal demand due to more home cooking as most of the people are in home office and the closure of the restaurants. On top of this is also more import demand to build up stocks and ensure the food security is observed.
Those factors in combination with governmental support programs in some countries resulted in a stable world milk price of 36.5 USD per 100 kg solid corrected milk (4% fat and 3.3% protein).
Looking back at the year 2020, we are happy to report that our initially estimated forecast for the world milk price of has come true. At IFCN, we are striving to combine all different angles and bring forecasts between supply and demand into balance.
This we are achieving via our knowledge of supply conditions and farm economics with real time data for 65 countries, as well as checking the developments of the dairy trade and future prices for the 3 main dairy markets (New Zeeland, EU and US). We are in continuous exchange with our research partners to get the insights around the globe and bring those into perspective of future developments.