Monday, December 6, 2010
New Zealand & U.S. Dairy Farm Milk Price
(click on image to enlarge)
In the above graph I took some liberties. The New Zealand production year starts in the middle of the calendar year. Therefore, some time adjustment is needed. Next, by placing the NZ price on the right axis, I was surprised to note that the two prices, visually, can be compared.
Recently, the price NZ farms receive has become higher than the U.S. price. Both the U.S. and NZ prices have been rising but, note the trends. NZ farm milk prices have been rising at a faster rate.
All the conventional experts talk about a world market. Exports are very, very important everyone is told. Well, if U.S. prices are lower than world prices, exports are very, very important to someone but, not dairy farmers.