Australia won’t flood market

AUSTRALIA/ITALY – A senior figure in the Australasian dairy industry has said that there is little danger of New Zealand and Australia flooding world dairy markets.

Addressing the Food and Agriculture Organization’s Dairy Outlook Symposium in Rome, New Zeland Milk Products (NZMP) managing director for Europe, Africa and the Middle East Grant Waterhouse said: “Anyone worried about New Zealand and Australia flooding the world with milk should reflect that the share of milk produced there is predicted to rise only barely, from 4.3% in 2000 to 5.3% in 2007, despite steady growth in world demand.” Past predictions of a growth in supply from the region have suggested that the world proportion of products from the area would rise.

Waterhouse added: “We expect total demand for dairy products to continue to grow reasonably strongly through the next decade at an average of 2% a year. Most of that demand will be met by local supply. As a result growth in international trade will be limited, unless there is substantial progress on liberalising markets and access.” NZMP is the trading arm of New Zealand’s Fonterra Co-operative Group.