Thursday, December 15th 2016
An Irish dairy industry leader says there is a strong correlation between oil and dairy prices on international markets and rising crude oil prices could lead to rising dairy exports. CEO Gabriel D’Arcy of Irish dairy cooperative LacPatrick told Irish news service Agriland rising oil prices increase purchasing power for oil producing countries. He says when oil hits $50 per barrel, oil producing nations typically begin actively purchasing dairy products. D’Arcy says nearly 40% of the world’s dairy trade is done with oil exporting nations. He says it will take time and a sustained 50 dollar a barrel oil price for the global dairy market to see an increase. USDA statistics show OPEC countries purchases 1.38 million tons of dairy products. Much of that is whole milk powder and skim milk powder.