Milk supply slowdown will hit dairy processors

21 August 2017

New Zealand dairy processors will struggle to fill existing and planned capacity in coming years as milk supply growth slows, according to a report.

The report, Survive or Thrive—the Future of New Zealand Dairy 2017-2022 by Rabobank, said milk processing plants had invested heavily to expand their capacities between 2013 and 2015 in anticipation of strong milk supply, but now milk production is forecasted to slow to, or below, 2% for the next four years.

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