The outlook for international dairy markets for the balance of 2006 continues to be fairly positive as demand continues to be driven by strong economic growth – over 6 percent forecast in developing countries and over 7 percent in Asian nations.This strong growth, particularly in developing regions,translates into rising disposable income accelerating expenditures not only for basic food products but also higher value added branded products.In the key China market,growth is expected to drop only slightly from the previous year but still near 10 percent.However,concerns remain over the persistence of high oil prices and the upward adjustment of interest rates in response to inflationary fears generated by these energy prices.