The Board of Fonterra will consider its current farmgate milk price forecast for the 2015/16 season, which is just starting, at its next meeting on August 7th.
The forecast, which currently stands at NZ $5.25/kg of milk solids (21.7 c/l), is under downward pressure after a series of sharp falls on the GDT (Global Dairy Trade) auction platform.
WMP sold at this event at US $1,848 (€1,700)/tonne down from $3,272 (€3,010)/tonne in February this year and from $5,005 (€4,605)/tonne in February 2014.
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Dairy markets have been suffering from a big supply/demand imbalance, which has hit prices hard. There is a lack of demand globally, particularly from China and Russia, coupled with a huge surplus from New Zealand, Australia, EU and US.
ANZ bank has revised its farm gate milk price down to $3.75 to $4.00/kg of milk solids (15.5-16.5 c/l) from its previous forecast of $5.40/ kg (22.4 c/l). This week’s WMP price would return a milk price of NZ 5.00/kg (20.7 c/l) before processing costs, which could be as high as 8 c/l.
The breakeven milk price for most farmers In New Zealand has been estimated at $5.70/kg milk solids (25.6 c/l).
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Title: Fonterra milk price under pressure
The Board of Fonterra will consider its current farmgate milk price forecast for the 2015/16 season, which is just starting, at its next meeting on August 7th.
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The forecast, which currently stands at NZ $5.25/kg of milk solids (21.7 c/l), is under downward pressure after a series of sharp falls on the GDT (Global Dairy Trade) auction platform.
WMP sold at this event at US $1,848 (€1,700)/tonne down from $3,272 (€3,010)/tonne in February this year and from $5,005 (€4,605)/tonne in February 2014.
Dairy markets have been suffering from a big supply/demand imbalance, which has hit prices hard. There is a lack of demand globally, particularly from China and Russia, coupled with a huge surplus from New Zealand, Australia, EU and US.
ANZ bank has revised its farm gate milk price down to $3.75 to $4.00/kg of milk solids (15.5-16.5 c/l) from its previous forecast of $5.40/ kg (22.4 c/l). This week’s WMP price would return a milk price of NZ 5.00/kg (20.7 c/l) before processing costs, which could be as high as 8 c/l.
The breakeven milk price for most farmers In New Zealand has been estimated at $5.70/kg milk solids (25.6 c/l).
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