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Glen Muir

BBC News - How Chinese babies and Mid-East pizza tip US markets - 17 views

  • his year in the US, milk futures leapt 26% and butter prices 62%
  • As a result, there was usually an oversupply of milk products on the market, Levitt says.
  • US and European governments stored excess dairy products
  • ...13 more annotations...
  • nd dairy regulation decreased, driving a new incentive and ability to trade with other nations.
  • s a result, the dairy market tends now toward undersupply.
  • But from December 2013 to February 2014, Chinese demand grew to 20-25% of all global dairy imports, with much of the supply coming from the US and New Zealand.
  • New Zealand is the world's largest dairy exporter, accounting for nearly one-third of the global dairy trade.
  • Many of the nation's cows graze in fields, and a big drought in 2013 caused national milk production to plummet nearly 30%.
  • The US started exporting more dairy, capturing more international market share but pushing up domestic prices.
  • It's not all bad news for New Zealand, though. Traditionally, when the price of dairy goes up, farmers expand operations and produce more milk, thus lowering prices down the line.
  • The increase in supply could eventually lead to cheaper prices in the US, but not for several months.
  • US franchises including KFC, Ihop, Subway, The Cheesecake Factory, Jamba Juice and Papa John's Pizza have all staked claims in the Middle East, with more chains looking to follow.
  • A young, newly urbanised population in the Middle East is demanding more dairy imports.
  • That removed an estimated $6.6bn (£4bn) in annual dairy trade from the global market. In 2013, the EU alone exported $3bn of dairy to Russia, of which cheese accounted for more than one-third.
  • In response, the European Commission has announced it will provide financial support to the dairy industry, subsidising private storage of cheese, skimmed milk powder and butter until they can be sold at a later date.
  • But it will take a little while to see those changes reflected in American supermarkets.
    5 factors that affect global market price

GOOD Video: Engaging Students with Lessons On Demand - Education - GOOD - 7 views

    "This is the first of eight videos in our Future Learning series, which explores technology in the classroom."
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