Fonterra reports rise in dairy exports to China

New Zealand dairy co-op Fonterra says its consumer exports to China increased by 14% in February, with industry analysts predicting the trend will continue.

Chinese imports for the 12 months to February rose 6%, versus a 1% gain in the year to January. Low Chinese imports and the Russian import ban are among the principal factors cited by many dairy co-ops for the ongoing sector price deflation.

“Our feeling is the extreme excess we saw a year or so ago in stockpiles in China has been coming out. If that is true you’d expect import demand would start matching domestic demand again,” Bank of New Zealand economist Doug Steel told Reuters.

Higher prices in New Zealand’s fortnightly global dairy price auction suggest “some more buying as well”, he added.

The pick-up in Chinese imports is being driven by a drawdown in local stockpiles. Around 85% of the farmers in China are currently operating at a loss, with prices down more than half since early 2014 amid a global surplus.


Lifestyle

This week's food news with Joe McNammee.The Menu: Quick nibbles; International Women's Day; The People's Choice

With spring around the corner, it’s the perfect time to treat your home to a detox. Gabrielle Fagan taps up the Topology design gurus for tips.How to make your home calmer and less cluttered in 7 simple steps

From Bermuda shorts to romantic white dresses, Prudence Wade looks at the styles you’ll want to wear this season.7 of the biggest spring fashion trends fresh off the catwalk

If your car has been affected by the weather, read on for tips on what to do next.Dude my car is flooded-what should I do?

More From The Irish Examiner