If dairy prices have plunged more than 50 % and US dollar have gained versus many currencies. Why does a gallon of milk cost same or more??
Why the RBNZ Cares So Much About Dairy
Wellington - Dairy prices have plunged more than 50% from a peak in early 2014, causing great concern among policymakers about the health of the sector which accounts for around 30% of New Zealand's merchandise exports. The grim outlook for the dairy sector was one of the key reasons why the Reserve Bank of New Zealand (RBNZ) decided to cut the Official Cash Rate (OCR) on Thursday - the first rate cut in more than four years. According to the RBNZ, the decline in dairy prices since early last year was proving to be more pronounced than anticipated. New Zealand dairy giant Fonterra is forecasting a payout this season ... (full story)