In recent years, there is a tendency to a reduction of dairy sales. By December 2016 the wholesale raw milk price increased by 40%whilst milk food- by approximately a quarter. The downdrift won't stop in 2017. Companies will demonstrate the yields stability, but only by improving the large operators' productivity. Many small manufacturing companies will leave the business.
Such forecasts are given by one European economist. In his words, the overall volume of dairying in 2016 eased off, after the sudden fall in 2015. The release of some commodity positions was even increased. The process of reducing the release of fresh milk food is almost managed to stop.
The expert believes that in 2017 the circumstances will not change greatly. Though, a certain diversification in the choice of the assortment will happen. The privilege will be by the export of raw materials, dry milk products in particular. These expectancies are grounded on the forecast of growth of world prices for dairy in bulk.
In the context of a severe economic crisis, the consumption of this sort of food gradually decreases. 2016 was not an exception, but the pace of this decline became slower, and for some products, the process altogether stopped.
Experts are sure that the "bottom" was already achieved in this negative phenomenon. Now there are reasons to believe that already in 2017 the consumption will gradually recover, even in spite of the significant price increase.
Exports of dairy in 2016 fell to a record low in terms of money from the 90's. This decline has more to do with a significant fall in prices than to a decrease in actual volumes. The second half year was followed by a significant increase in the milk prices, for both the domestic market and for export. The wholesale raw milk cost increased by about 40% and dairy products - by approximately a quarter.
In 2017, is expected the further rise in prices for dairy, and the production of raw milk will fall.
