Butter, milk and cheese prices are falling as a surge in global milk production floods the market, prompting warnings of a looming period of weak prices.

“Too much milk for the market, combined with strong milk solids growth, has contributed to a sharp decline in commodity prices,” Rabobank senior agricultural analyst Emma Higgins said in a report Thursday, describing the output as “stunning.”

Global production has accelerated across major exporters. New Zealand farmers set new monthly milk solids records from May to September, with October marking the third-highest peak on record, according to the report. The EU, UK, US and South America have also delivered strong growth.

That means supply is now outstripping demand, Fonterra Cooperative Group Chief Executive Officer Miles Hurrell said

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