RTTNews - Tuesday, New Zealand's Ministry of Agriculture and Forestry said the average dairy products payout for the year ended May 2009 was estimated at NZ$5.25 per kilogram of milk solids. Taking into account lower exchange rate assumptions, future payouts are projected to average around NZ$5.5.
MAF expects demand for dairy products to remain weak for the next 12 to 18 months. At the same time, production is expanding in many dairy producing nations.
Further, MAF said international dairy prices bottomed out in February 2009 and recession would keep prices relatively flat over the coming two years. Renewed economic growth would fuel demand. Consequently, prices would rise slowly with demand.
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