Fonterra's very likely to cut its milk price forecast for farmers soon and it is looking like this season's milk price will be below the break-even point for many farmers, according to Westpac economists. Giant dairy co-operative Fonterra has made an opening milk price forecast for the season that started last month of between $7.25-$8.75 per kilogram of milk solids, giving a 'mid-point' price of $8. He said that for many farmers, this season’s milk price is likely to be below their break-even point. $0.50/kg above our milk price forecast. With that in mind, plus the experience gained during previous downturns, we expect that farmers are well-placed to manage through this milk price cycle."

Source: New Zealand Herald July 26, 2023 07:15 UTC