February 19, 2008

New Zealand dairy production plummets by 30 percent

New Zealand milk production has dropped 30 percent as the country struggles with drought since November.

Observers said that the inadequate rains late last year was unusual for the dairy regions which get good falls every fortnight.

Weather forecasters are not expecting adequate rain until April, which could hurt the Waikato region, the largest dairying area in the country.

Tim Hunt, dairy analyst with Rabobank, said the drought in New Zealand would help stabilise international dairy prices, which have come off the boil in the last few months.

Hunt explained that the drought and reduction in New Zealand exports has come at a timely moment for other exporters as it will help moderate the recent price falls.