Strong milk markets in US and NZ

FURTHER signals of strong international dairy markets have followed the surprise 25% recovery in milk prices in the monthly auction run by Fonterra of New Zealand.

Milk futures in Chicago rose towards a two-year high this week, after US butter exports for the first half of 2010 soared 260% compared to 2009, and cheddar cheese shipments rose 189%.

China, Japan and South Korea were among the major buyers, as the US exported dairy products worth $2.03 billion in the first seven months, up 66% from 2009.