It is interesting to see that Russia is accessing dairy products from new sources and so changing the market flow. Iran is now exporting dairy products to Russia. It is good for the farmers of Iran who hopefully will see a benefit.
What it does show, is that international policies, a long way from home, have an impact.
The concept of a butterfly fluttering on the other side of the world causing a storm on the other side is one that comes to mind.
Here, Russia has banned the imports of European dairy products. Now new suppliers will help fill the gap.
The Europeans will look for new markets increasing competition in Asia where Australia currently supplies product – the outcome is price competition for commodity products.
Read this news update to learn more.
These changes show that to maintain market share, exporters need to watch and read markets and always be aware that changes and effects can and will come from unexpected sources.