Dairy prices set for boost after drop in NZ exports
International dairy prices are set for a New Year boost due to a 5-15pc drop in dairy exports from drought-affected New Zealand.
The latest quarterly dairy report from Dutch bank Rabobank has predicted that New Zealand's dairy exports will, this year, fall for the first time in two years.
Dairy market analysts at the bank said that emerging supply constraints were likely to exert significant upward pressure on international prices in the first quarter of this year.
The bank's positive price prediction was also based on strong buying from both China and Russia, which is expected to continue this year.
The most recent Fonterra global trade auction in New Zealand highlighted the improving market situation, with prices, on average, 7.1pc higher than last month's auction.
While butter prices remained stable last month, powder prices on the British, EU and world markets all improved, with the latest Dutch dairy quotations, issued on Wednesday, following the same trend.
ICMSA dairy chairman Pat McCormack said the improved Dutch prices were about 4c/l higher than current Irish prices.