Dairy prices have made their largest lift since September last year, with an impressive 12.7% rise in this week's GlobalDairyTrade auction. ''We have seen periods of strong gains in dairy prices followed by partial retracement in the past. Mr Steel suspected the market was now factoring in a sizeable decline in New Zealand milk production. ASB rural economist Nathan Penny said the bank was sticking with its $6 milk price forecast for 2016-17. It was estimated the New Zealand dairy herd had shrunk an unprecedented 5%, or 300,000 cows, on top of the 3% fall last season.

Source: Otago Daily Times August 17, 2016 18:00 UTC