Fonterra has cut its forecast milk price by 25 cents to $3.90/kg (16.4 c/l) even though the last auction price showed an increase in the price paid for dairy products.
Duncan Coull, chairman of Fonterra Shareholders’ Council said the new forecast would put farmers under more personal stress.
Bankers are taking a considered and cautious approach to the situation. A spokesperson said “they would not rush to be forcing people of their farms, but inevitably there are a few that are going to be highly indebted”.
Chinese demand recovering
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Fonterra’s CEO, Theo Spierings said the cut would see farmers milk price fall by $400 million (€244m) for the 2015/16 season.
He also said dairy demand from China was recovering at a slow annual rate of 4-5% but sales to oil producing countries was under severe pressure.
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Title: Fonterra cuts milk price again
Fonterra has cut its forecast milk price by 25 cents to $3.90/kg (16.4 c/l) even though the last auction price showed an increase in the price paid for dairy products.
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Duncan Coull, chairman of Fonterra Shareholders’ Council said the new forecast would put farmers under more personal stress.
Bankers are taking a considered and cautious approach to the situation. A spokesperson said “they would not rush to be forcing people of their farms, but inevitably there are a few that are going to be highly indebted”.
Chinese demand recovering
Fonterra’s CEO, Theo Spierings said the cut would see farmers milk price fall by $400 million (€244m) for the 2015/16 season.
He also said dairy demand from China was recovering at a slow annual rate of 4-5% but sales to oil producing countries was under severe pressure.
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