It’s too early to say whether a sharp dip in this week’s GlobalDairyTrade auction signals a threat to payout, Fonterra chairman Sir Henry van der Heyden says, but world demand for dairy products is still «good and robust».
A nearly 10 per cent fall in the average price of commodities on the world market barometer online auction had some economists speculating that next season’s dairy farm payout, already under pressure from easing commodity prices, would be further weakened.
But van der Heyden said pressure on pricing resulted from there being more milk supply in the world than there was currently demand for.
«But the fundamentals are good.»
http://www.stuff.co.nz/business/farming/6776282/Dairy-price-dips-but-demand-still-strong
