However, while "white gold" appears to be edging toward platinum status for New Zealand, it poses mid- and long-term challenges for the economy as a whole because of pricing, demand and currency volatility and the effects of having a primary sector driving the economy.

Billions of unexpected dollars are being pumped into the New Zealand economy from record payouts to Fonterra shareholders from a combination of spectacular increases in global dairy prices and growth in demand - further boosted by the removal of European Union farmer subsidies.

When Fonterra lifted its forecast payout to $6.40 per kilogram of milk solids last month, the average dairy farm income of its 10,883 shareholders was increased by $207,000 to a total $690,000 for the year.

This payout level will boost the overall annual payout from last year by about $2.5 billion, to a total $8 billion.

Source: New Zealand Herald