DAIRY FARMERS around the globe will ride a wave of strong but volatile prices for the next five years with markets driven by steady annual growth in demand around 2.5%.

Fonterra's decision to drop its 2011-12 forecast payout by 15c/kgMS demonstrates the trade exposed nature of our primary industries, says Federated Farmers Dairy chairman Willy Leferink.

Fonterra is reducing its 2011-12 forecast payout by 15c/kgMS as a result of declining commodity prices and a soaring Kiwi dollar.

The North and South Island Wool auction comprising 26,000 bales saw a firm to dearer market with a 90.3% clearance, New Zealand Wool Services International Ltd's marketing executive, Malcolm Ching says.

A South Island offering of 8400 bales saw a generally firmer market this week and an 89% clearance rate, says New Zealand Wool Services International Ltd's marketing executive, Malcolm Ching.

Nine billion more litres of milk will flow on to the world markets annually when Europe lifts quotas in April 2015, says Rabobank's senior global analyst dairy, Kevin Bellamy.

Synlait milk plans to market a powder made with cows' production during the hours of darkness, and promises to pay suppliers a premium for the raw material.

Simon Walker was keen to ride the milk wave, but he wasn't willing to convert his sheep and beef farm at Mokomoko near the town of Pahiatua in the Tararua District.

ANGER AT Zespri marketing mistakes and Government responses to the Psa-V crisis reached boiling point last week with a grower-organised meeting at the Te Puke hall on Friday.

THE VALUE of Australian lamb exports rose 12% last year to top A$1 billion for the first time.