Global dairy markets last week broke out of a seven-month stable stretch in a move labelled “material and meaningful” by one leading analyst.

OBVIOUSLY I will stay clear of the specific issue of the Crafar Farms, since once again this is before the Government and the courts.

The market held up fairly well for the last of the larger offerings of this season with 22,700 bales on offer and an 84% clearance, New Zealand Wool Services International Ltd's general manager, John Dawson reports.

NEXT SEASON'S milk payouts face a greater threat from the surging Kiwi dollar than supply/demand issues around the world, says BNZ economist Doug Steel.

FONTERRA CAN generate cash from within its business to finance growth but needs a stable capital base to do this, says chief executive Theo Spierings. He says TAF (trading among farmers) will ensure a strong capital base for Fonterra.

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.