Global food commodity prices have risen steeply as a whole over the past decade. Despite a major drop-off caused by the Global Financial Crisis between 2008-2010, global prices have recovered.
Throughout that period, New Zealand has reaped the benefits of a relatively insulated Chinese economy continuing to grow and demand high quality food products - particularly from our agricultural sector.
Europe remains the world's largest dairy exporter, accounting for more than one-third of total world trade in dairy products. However, in terms of exposure to the fortunes of the dairy sector, New Zealand stands out among other dairy exporters, according to HSBC.
Despite accounting for only 3 per cent of global dairy production, New Zealand is involved in 20 per cent of the world's trade in dairy products. Putting that in perspective, Australia also has significant exposure to the sector account for only 6 per cent of world dairy trade.
China is the world's largest dairy importer, accounting for 7.4 per cent of the total in 2011 with levels surging since, to be up by 97 per cent in terms of value over 2012 and 2013. The effect for world dairy has seen prices rise to record levels, with further growth anticipated.