Waikato Times, Andrea Fox, March 6, 2013.
Economists are tipping a lift in dairy payout after a 10.4 per cent surge in the average price on Fonterra’s latest Global Dairy Trade auction, as product-hungry international buyers reacted to a shrinking world dairy supply.
The BNZ and Westpac predicted Fonterra’s payout forecast for the 2012-2013 season would get a nudge up from the auction result, which saw the average price of wholemilk powder break through the US$4000 barrier for the first time since March 2011.
BNZ economist Doug Steel said the big jump in average price last night was driven by drought in New Zealand, shrinking milk production in Australia and robust world demand for protein. Product volumes offered were 14 per cent down on predictions.
A record number of overnight bidders went away unsatisfied, Steel said.