Dairy Prices Predicted to Remain Strong

NEW ZEALAND - International dairy prices are predicted to stay strong, despite slipping from the record peaks that they surged to late last year.

Fonterra dairy co-operative says prices are holding at higher than expected levels because of the supply squeeze caused by a drop in New Zealand milk production because of the drought.

That was one of the factors behind Fonterra lifting its forecast milk payout for the season by a further 40 cents to $7.30 a kg of milk solids.

The agribusiness banking specialist, Rabobank, shares Fonterra's view.

Rabobank international dairy specialist Tim Hunt says prices are likely to remain at relatively high levels for several years, despite some resistence in overseas markets to the unprecedented boom in commodity prices.

To continue reading this article please click here

Source: Radio New Zealand

© 5M Enterprises Ltd.
2000 - 2007
No part of this site may be
reproduced without permission

5M Enterprises Ltd., 4 Haywood House, Hydra Business Park, Nether Lane, Sheffield, S35 9ZX, England.

Co. Registration 3332321 - A Benchmark Holdings Ltd. Company