New Zealand to increase milk production

New Zealand will increase milk production for the next two seasons as strong demand from China and oil-exporting nations keeps prices high and boosts supplies, according to its government. Production may surge 5.7% in the year ending 31 May 2012, according to a recent report from the Ministry of Agriculture and Forestry. Output may increase by 2.9% for the 2012-2013 season and 1.2% for the following year, it says.
China’s dairy imports went up by more than five-fold between 2008 and 2010 due to rising incomes and nutrition levels. Oil-exporting countries are likely to increase their dairy consumption as oil prices rise, the report says. High prices may also encourage New Zealand farmers to switch to dairy from sheep, beef and arable farming, further boosting production, according to the report.