Fonterra likely to increase farmer payout for the 2015/16 season, economists say

Wed, 01 Apr 2015

By Tina Morrison April 2 (BusinessDesk) - Fonterra Cooperative Group is likely to increase its forecast payout to dairy farmers next season by enough to make production profitable for most farmers as lower global milk supply drives up prices, according to economists who follow the sector. Average prices dropped 10.8 percent in the GlobalDairyTrade auction overnight, with New Zealand's key product, whole milk powder, falling 13.3 percent. Still, economists said weak prices are occurring at a low point in the nation's milk production cycle...

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