Dairy prices way below 'fair' value, must rebound, says Fonterra's Spierings

Sun, 26 Oct 2014

By Pattrick Smellie Oct. 26 (BusinessDesk) - Current dairy commodity prices are now well below "fair" expectations of price among global dairy producers, says Fonterra's chief executive, Theo Spierings. Speaking on TV3's The Nation, Spierings said his discussions with other global dairy companies and milk traders suggested around US$3,500 per tonne of milksolids is seen as "very fair". "It's well below that now," he said. The current global index price of US$2,640 a tonne was set in the last GlobalDairyTrade auction, on Oct. 15, when g...

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