Global demand and prices stable for dairy

NEW ZEALAND – Fonterra has said that dairy commodities’ global demand and prices are stable, and that it expects prices to remain at current levels in the short to medium term.

The company’s chief operating officer Jay Waldvogel said this was positive news for the company, despite the high value of the New Zealand dollar and the expected currency impact on payout over the next two seasons.

“Markets appear to be reacting rationally at the moment,” he said. “Overall, product demand is good, and we are expecting prices will stay around the same levels through 2004. If prices remain stable in the medium term, this should provide some protection from the negative impact the high New Zealand dollar will have on next season’s forecasted payout.”