As many dairy farmers grapple with the current low farmgate milk prices and wonder when they can expect a return to the halcyon days of 2013, some in the industry are questioning whether the current decline represents something more permanent.

Most analysts say we are experiencing a breakdown of the supply-demand balance and that the market fundamentals still point to a recovery during the first half of 2016. Although I agree a recovery is on the cards, I’m increasingly of the view that we are in the throes of a structural change in the global dairy commodity market and that the recovery will not be what many people expect.