NZ banks to come under pressure from second season of low dairy prices, Moody's says

Wed, 09 Mar 2016

By Tina Morrison March 10 (BusinessDesk) - New Zealand banks will come under increased pressure from a second season of low dairy prices, as global milk supply exceeds demand, according to ratings agency Moody's Investors Service. Fonterra Cooperative Group's move this week to cut its forecast payout to farmers for the 2015/16 season to $3.90 per kilogram of milk solids, from a previous estimate of $4.15/kgMS, "is credit negative for New Zealand banks because a lower payout reduces the income that farmers receive, thereby threatening the...

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