WORLDWIDE – World dairy product prices should increase over the next year according to a report from the Organisation for Economic Cooperation and Development (OECD).

The rise is expected to result from lower supplies in Oceania, although a recovery in milk production in the region will likely slow the pace of further price increases.

The report, entitled “Agricultural Outlook 2003-2008”, also predicts an increase in the global supply of milk, resulting from higher productivity. Coupled with a slower growth in world demand, it will limit price rises for dairy products over the medium term.