US Department of Agriculture sees another 18 tough months ahead for global dairy industry

The US Department of Agriculture has cut its forecast for New Zealand milk output in 2015 — but said the reduction in the world’s No 1 dairy product exporter won’t be enough to revive gobal dairy markets.

It expects NZ farmers, faced with their lowest milk prices in seven years, to produce 2.2% less milk year-on-year, which would their biggest annual milk production decline in 16 years.

But USDA analysts say the Chinese demand which drove prices of some dairy products to record highs in 2013 and 2014, may not recover for several years.