Broker warns average NZ dairy farmer to lose $140k this season, faces third year of weak prices

Mon, 15 Feb 2016

By Edwin Mitson Feb. 15 (BusinessDesk) - Financial broker OMF is warning the average New Zealand dairy farmer is likely to lose $140,760 this season, with next year looking just as grim. In its monthly New Zealand dairy report OMF suggests there is a further risk that Fonterra Cooperative Group could lower payouts again, pointing to a potential milk price of $3.89 per kilogram of milk solids. Fonterra lowered prices on Jan. 28 to $4.15/kgMS. OMF estimates the current cost of production is $5.31/kgMS. OMF said dairy farmers are likely...

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