Fonterra milk price hike to $6 adds billions to economyunknown Dairy giant Fonterra has lifted its milk price by 75 cents in response to the recent lift in dairy prices at the GlobalDairyTrade auctions. "Any further increases in milk prices will go towards repaying Fonterra loans for the majority of farmers who have them." But the $6 milk price is still well above the break-even level required to meet the main cash costs." The recent wet weather in the North Island had the potential to send milk prices even higher. "In addition there is a potential impact from the price of milk price reference products, such as whole milk powder, rising faster than non-reference products."

Source: Stuff November 17, 2016 19:54 UTC