A new Rabobank report says the medium-term outlook for the world dairy industry has returned to a positive state after the severe shaking up it's had during the past year or so.
The report says the global financial crisis has effectively cost the dairy sector a year of growth, but demand and prices are expected to recover in the next few years.
However, one of the co-authors, analyst Hayley Moynihan, says there's still some nervousness about the shorter-term outlook over the next year.
Contributing to that nervousness are large stockpiles of milk powder and butter in the European Union and United States as a result of government intervention buying aimed at supporting milk prices in those markets.
