August 4, 2008

 

Dairy farmers hurt by high Australian dollar
   
  

The robust Australian dollar is hurting dairy exports and allow major competitor New Zealand to leave Australia behind in the race.

 

The strong currency means Australian farmers are selling into a weak global dairy market at high prices.

 

This means that New Zealand dairy products are undercutting Australian prices in the international market, according to Barry Irvin, chairman of Bega Cheese and Tatura Milk.

 

The Australian dollar is probably 20 percent stronger than it normally is when against the New Zealand dollar, which gives New Zealand a lead, Irvin said.

 

Although there is a 14 percent drop in Australia's dairy exports, but latest statistics from Dairy Australia showed that the industry still made a 14 percent-increase in profits due to high dairy prices.

 

Exports of butter products and milk protein shrunk the most in the last financial year.

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