Rabobank continue to 'up the anti' with their projections of a supply / demand inbalance in favour of agricultural producers. They predict increasing prices and volatility through to 2020 and the requirement to increase agricultural productivity four-fold by 2050. NZ dairy farming, with our low cost pasture base is particularly suited to this outlook - we can still make profits at relatively low prices and the volatility will stop Northern Hemisphere producers ramping up production.
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