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The present milk price forecast of $4.25/kg milk solids (20.36c/l) is expected to rise to $4.85/kg (23.24c/l) before May 2017 and to $6.15 (29.50c/l) for the following season.
John Wilson would not put and exact date on the turnaround but said that all the indications were that the dairy market would balance out over the next six to 12 months.
In the past, dairy farmers in New Zealand were able recover much quicker because the NZ dollar would fall in line with dairy prices but that did not happen this time for a whole lot of reasons.
He also said that a Brexit could have a major effect on dairy markets.
Dairy futures market: slight fall in dairy futures following last week’s GDT
Milk production is falling across the world
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