Overall dairy auction prices were down just 0.4 percent overnight.
ASB economist Nathan Penny said Britain’s exit from the European Union has had only a slight effect on dairy markets here.
He said New Zealand relies more on markets in Asia, the Middle East, Africa and South America than the UK for dairy trade.
Mr Penny said the United Kingdom is a small dairy producer and certainly a small dairy importer and they’re sticking to their 2016/17 overall milk price forecast of six dollars.
But while dairy farmers can breathe a small sigh of relief, experts warn it may be quite a different story for lamb and wine exports.
Beef and Lamb New Zealand and the Meat Industry Association are concerned Britain’s exit from the European Union will lead to an oversupply to markets New Zealand supplies.
The EU is New Zealand’s most valuable market for red meat and associated co-products, accounting for over two billion in trade last year.
Mr Penny agreed and said in terms of trade, the main direct impact is likely to come through lamb, wine and to a lesser degree, fruit.
He said a little over a fifth of New Zealand lamb exports go to the United Kingdom while it’s just over a quarter of our wine exports.
Source: NewstalkZB
Link: http://www.newstalkzb.co.nz/news/business/nz-dairy-exports-have-dodged-brexit-bullet-economist/
