Dairy farmers that have faced months of dropping global dairy prices may have to put up with suppressed values for some time yet.
Hayley Moynihan, director of dairy research for New Zealand and Asia with Rabobank, said that the trough the market is in does not seem to be ending anytime soon.
“The downward pressure recently has been due to things like a low euro currency, and the fact that European prices are reasonably weak, that’s pulling the rest of the market down”, she said.
“We haven’t seen the end of those low prices, I think we are going to see this trough continue through the winter here in the southern hemisphere, and not really lift until we get into spring and the end of the year.”
Ms Moynihan said New Zealand producers faced an extra challenge compared to their Australian counterparts, given New Zealand’s reliance on exports.
Source: ABC Australia
