The forecast is below the $5.60-$6 forecast payout announced by Westland, New Zealand’s second largest dairy co-op.

Westland’s CEO Rod Quin, said he expects the return of Chinese WMP (whole milk powder) buyers to the market. He said dairy prices are expected to recover as the 2015/16 season progresses, although they should remain relatively low due to ongoing milk supply pressure from the US and EU.

He went on to add that the global dairy industry is in unchartered territory. This is due to the removal of EU quotas after 30 years, ongoing Russian sanctions and a lower demand from China, where there is a high level of imported stock overhanging the market.

In any season, any one of these factors would cause major uncertainty.