11 Feb 2011

NZ wheat prices set to go up on back of overseas rises

7:44 am on 11 February 2011

The grain industry says rising international prices for wheat are likely to put pressure on wheat prices in New Zealand this year.

International wheat prices have more than doubled over the past year as drought and fires in Russia and floods in Canada and Australia have hurt crops.

China is also facing its worst drought in 60 years in two of its main grain-growing regions, prompting fears it will be forced to import more grain to meet domestic demand.

Foundation for Arable Research chief executive Nick Pyke says the overseas situation is expected to lift grain prices in New Zealand, particularly as local production is down on last year.