China's milk stockpile leaves NZ farmers struggling

Wellington

CHINA once helped drive global dairy demand but its stockpiling of powdered milk sent prices plunging and has left farmers in the world's top milk exporter, New Zealand, struggling to stay afloat and its agriculture-dependent economy facing risks.

New Zealand's dairy sector was until recently the backbone of the economy, representing around 25 per cent of exports, but in the past two years farmers have had NZ$7 billion (S$6.4 billion) wiped off their collective revenue.

Today, around 85 per cent of farms run at a loss, leaving them fighting to stave off bankruptcy and f…