Weather watch as global dairy prices rise

Dairy farmers around the world are closely watching weather trends in New Zealand, where a drought threatens to drive global dairy prices higher.

Already, there was a 10.4% dairy price surge in this week’s global auction conducted by Fonterra, the New Zealand co-op which dominates dairy exports.

Some New Zealand industry analysts say drought conditions could drive world dairy prices up to the record March 2011 levels, after the Government expanded its official drought classification of areas.