30-07-2014 00:27 AM | New Zealand

Global dairy glut knocks earnings of New Zealand farmers

New Zealand dairy farmers learned Tuesday that their earnings for the 2014-2015 season will be worse than expected thanks to a boom in global production and a glut of dairy products in China.

Farmer-owned cooperative Fonterra, the world's biggest dairy exporter, announced a payout of 6 NZ dollars (5.11 U.S. dollars) per kilogram of milk solids, down from 8.40 NZ dollars (7.15 U.S. dollars) in the previous season, sparking concerns over the impact on the national economy.

The drop in payments would see total earnings by the country's dairy farmers, who produce the country's pillar export commodities, fall by 4.3 billion NZ dollars (3.66 billion U.S. dollars), or the equivalent of 1.9 percent of gross domestic product, the New Zealand Herald newspaper reported.
Full Story : Xinhua