Dairy prices lift morale and bank balancesSONITA CHANDAR/FAIRFAX NZ Paul, Pippa, Reuben and Lisa Charmley. If dairy analysts are to be believed and Fonterra's end of season farmgate payout rises to $6 per kilogram of milksolids, it could mean a $3.2 billion lift to the economy. ASB rural economist Nathan Penny picked a $6 farmgate payout for 2016-17 a year ago. At present the official forecast farmgate price sits at $5.25/kg MS - augmented by a dividend of between 50-60c for Fonterra shareholders. She said milk price futures had also reacted positively, and on Thursday the September 2017 milk price futures contract traded up 33c to close at $5.95.

Source: Stuff November 03, 2016 03:13 UTC