FXStreet (Bali) – Following today’s announcement by Fonterra, now expecting to pay farmers NZ3.85/kg in the coming year, the corporation also announced a Co-operative Support Program of an additional 50 cents per shared-up kilogram of milksolids to support farmers this season.
Revised 2015/16 Farmgate Milk Price Forecast – Official release
Chairman John Wilson said the Farmgate Milk Price forecast has been reduced from $5.25 kgMS to $3.85 per kgMS due to the continued significant imbalance in the global dairy market between weak demand and surplus supply.
“This imbalance and the challenge of lower prices continuing for longer than anticipated is a global issue, which dairy farmers around the world are increasingly grappling with.
“Current prices are unsustainably low and we are seeing them beginning to impact production levels globally. We have confidence that prices will recover over the course of the season. However, it will be a tough season for our farmers.
“The range of possible scenarios is contributing to the uncertainty we are seeing today.
“We know the global dairy market will improve. The hard thing to call at the moment is exactly when and how quickly,” said Mr Wilson.
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