Red Sky managing director David Beca said the world recession is likely to have an impact on lowering prices and further demand for global dairy products, which in turn will mean a lower payout for dairy farmers. Red Sky is a company providing software, which enables farmers to analyse their business. Mr Beca, who is based in Victoria, Australia, said he was pretty pessimistic about the future of dairying. "I am concerned in that we are not just seeing a significant softening of commodity prices, but the climate of recession in the major western countries, will affect us as well." The two were not a good cocktail, he added." We're having the same warnings that the payout in Australia will fall by about 10%. Mr Beca doesn't believe the impact will be a quick shock and the biggest concern may come the year after, with people having less disposable income reports The Manawtu Standard.
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