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Speaker 1: So over the past year, thank god for the milk prices, right,

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Speaker 1: dairy prices well. A new report from Rubber Banks says

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Speaker 1: maybe there's too much milk for the market. Global dairy

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Speaker 1: prices are under pressure after surging New Zealand production through

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Speaker 1: the back half of the year, and rubber Bank says

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Speaker 1: the global dairy prices are set to weaken. Farmers have

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Speaker 1: been breaking records month after month. May through September. October

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Speaker 1: hit the third highest output ever. So joining us is

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Speaker 1: doctor Jacquelin Rath, a professor at Lincoln University. Good on

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Speaker 1: to you.

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Speaker 2: To Jackelin, good morning.

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Speaker 1: So what's behind the increase of production? In fact, you've

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Speaker 1: described this report describes the global increase as stunning.

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Speaker 2: It's been building up for a while, and it's because

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Speaker 2: milk is a very good product and people want to

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Speaker 2: consume it, and it's good for so many different things,

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Speaker 2: and people sometimes forget the calcium various bitiments. So it's

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Speaker 2: wanted an increase in people around the world. It means

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Speaker 2: that they're looking for high quality protein, so milk's about

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Speaker 2: the best thing you can do. And for the protein,

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Speaker 2: the amino acids, in particular the ones we need, it's

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Speaker 2: about the most environmentally It is the most environmentally sensible

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Speaker 2: food you can consume.

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Speaker 1: So go for it. Milk, yeah, exactly. So as the

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Speaker 1: price increases, of course the farmers say, oh, well, let's

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Speaker 1: pump out some more milk. But then that depresses the prices.

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Speaker 2: Well, this is a global thing, not just New Zealand,

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Speaker 2: and certainly we have been responding to signals about producing

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Speaker 2: more milk, but their world and other countries can do

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Speaker 2: it more quickly than we can because they aren't on

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Speaker 2: seasonal production in the same way that we are matching

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Speaker 2: the grass curve. They they eat supplements. So our milk

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Speaker 2: is in demand because it's grass fed.

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Speaker 1: But this is not great use for farmers. Well, I

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Speaker 1: mean no, I had to put it into some sort

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Speaker 1: of context because at the moment it's brilliant for farmers.

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Speaker 1: So this is less brilliant now.

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Speaker 2: It's come off the peak at the moment, and we'll

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Speaker 2: see what happens next to you. But always farmers have

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Speaker 2: an eye on the cost of product. So at the

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Speaker 2: moment and for a while across the sector. So I'm

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Speaker 2: talking drive stock as well. People have wanted consumers have

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Speaker 2: been prepared to pay more for our product. Than the

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Speaker 2: cost of producing it. So we keep an eye on

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Speaker 2: the cost of production, and it's the margins. We should

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Speaker 2: always be looking at the difference between cost of production

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Speaker 2: and what people are prepared to pay, and that stuff

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Speaker 2: like trying to sell a house. When people want our product,

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Speaker 2: we feel good about it, but then the joy spreads

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Speaker 2: and other countries start producing it too.

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Speaker 1: We know it swings and roundabout absolutely, Doctor Jacqueline Routh,

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Speaker 1: a profession Lincoln University.

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Speaker 2: For more fam earlier edition with Ryan Bridge, listen live

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