Dairy prices continued to fluctuate through the early stages of 2010 but, since rebounding in early September, they have been largely stable. Stabilising prices have been good news for the market and also for NZ dairy farmers in terms of Fonterra payout. We are positive about the outlook for dairy in 2011. However, some pressure may come on prices if supply growth continues in the main producing nations in the Northern Hemisphere. The latest example is US milk production lifting 2.7% in November compared to a year earlier.
So there you have it. Our fault.