Yet another report is pointing to near record high global dairy prices continuing into the new year.
Rabobank’s quarterly dairy report is predicting international dairy prices will remain around the $5000 a tonne mark for the first half of 2014.
Analyst Michael Harvey says the price is being driven by vigorous purchasing in the Chinese market where there have been local production problems.
He says higher global demand will see a rise in prices paid to Australian dairy farmers.
«We’re talking about a 30 per cent increase in milk prices right at this point. The other positive news out there at the moment is given what’s going on with US policy around their stimulus program we’ve seen the Aussie dollar drop back, if we see that continue that’s going to be additional cream on top for the dairy industry.»
Source: ABC