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The global dairy ingredients market is firming, although the US-China trade dispute and Brexit confusion could affect the stability of global dairy commodities, according to a market update from Maxum Foods.

The Australian ingredients company says global milk supply growth has slowed to a halt, while trade volumes are growing with attractive commodity prices for buyers, with the overall market is firming as a result.

According to Maxum, however, the ongoing effects of the US-China trade dispute and the confusion of Brexit present “clear dangers” to the market’s stability.

“The cloud of a Brexit “no-deal” hangs over the market with moderate risks for disruption to the significant cheese trade into the UK, and potential impact on other commodities if milk use in the UK’s major cheese suppliers’ changes,” the company says.

In other parts of the world, pasture conditions in New Zealand have been excellent, pushing milk output to record levels, and Chinese milk powder demand has surged significantly to help soak up NZ’s additional output, according to Maxum's market update.

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