Fonterra cuts its milk price forecastTOM LEE/STUFF Lower global prices have led to a cut in Fonterra's forecast payout, from $6.75 per kilogram of milksolids to $6.40. "In effect, farmers will receive equal or higher payments for their milk over this period than were scheduled under the previous $6.75/kg MS milk price." Federated Farmers dairy chairman Chris Lewis said the revision was disappointing, but came as no surprise to farmers. On the positive side, holding the advanced rate would be welcomed as farmers face a "double whammy" from forecasted dry weather and the cut to the milk price forecast. Westpac had also left its early season forecast for next season unchanged at $6.50/k, based on the exchange rate and demand conditions.

Source: Stuff December 06, 2017 18:35 UTC