| Rural News |
American investment bank Goldman Sachs is predicting New Zealand dairy production will fall for the first time in five years, with lower than average rain expected for the rest of 2012.
The bank’s New Zealand unit says milk production will fall 2.4 per cent, with dry conditions predicted from now through until early 2013.
Global whole milk prices tumbled 33 per cent in the eight months to April on the back of a bumper summer from New Zealand dairy farmers.
But with the possibility of a dry El Nino summer on the horizon, Goldman Sachs predicts Kiwi production will taper off and be more in line with global production levels.