10-06-2014 02:20 AM | China

Fonterra reassures of 'strong' China dairy demand

Fonterra eased concerns over ideas of waning Chinese orders blamed for a retreat in world dairy prices, saying "demand still appears strong", and will continue to outpace the rise in domestic milk production.

The New Zealand dairy giant, the world's top milk exporter, acknowledged that China's milk production "has shown signs of recovery" in the first three months of 2014, following market talk of an increase of about 5%.

However, demand by China, the top importer, is growing even faster Fonterra said, quoting Rabobank estimates that the country has a production deficit of 10bn litres, and growing.
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