[2 December/ Business Day: NZ Farmer]

Open Country Dairy has increased its full year average milk price forecast from between $4.25 and $4.45 per kilogram of milk solids to between $5.60 and $5.90 per kilogram of milk solids. The company said in an email to suppliers that improving market conditions in the past months had indicated a stable outlook for the global dairy market for the rest of the dairy season. The email added that an improvement in the exchange rate had also boosted confidence. The email explained that the main reason for the global price increase was the decrease in global milk supply.