Milk prices are volatile and difficult to predict so farmers should approach next season with caution. DairyNZ economists look at how the 2015-16 season could shape up.

South Australian dairy farmers have begun exporting fresh milk to China.

Primary Industries Minister Nathan Guy says farmers are resilient and will get through the low milk-price patch.

A weaker New Zealand dollar, limited wool volumes and renewed client interest, combined to lift local prices across the board says NZWSI general manager, John Dawson.

Lamb wool has been the ‘rock star’ this season, with values about $1 above last year, according to Wool Services International’s Malcolm Ching.

Despite last week’s drop in this season’s expected milk payout by both Fonterra and Westland there are positive – albeit slow – signs about the future outlook for dairy prices.

The latest wool auction of 4,700 bales from the North Island saw mixed price movements with a generally steady market overall.

The value of goods exports to Australia ($8.7 billion) surpassed those to China for the year ended March 2015, says Statistics New Zealand.

The China-led story about growth in dairy demand is likely over, says Hayley Moynihan, Rabobank’s dairy research director for NZ and Asia. 

Fonterra has announced changes to the roles and responsibilities of two members of the Fonterra Management Team.