Fonterra's milk price will put farmers under pressure

Fonterra's milk price will put farmers under pressure
Global milk production is still growing but is losing steam. (Image: Fonterra)
Rebecca Howard
Fonterra’s opening milk price for the current season will make dairy farm profitability “a real challenge”, said Rabobank senior agricultural analyst Emma Higgins.“While profitability depends on farming systems and management styles, forecast farmgate milk prices are at or below Rabobank’s estimation of average costs of production,” she said. In late May, Fonterra opened the new dairy season with a forecast farmgate milk price of $7.25 to $8.75 per kilogram of milksolids (kgMS), with a midpoint of $8.00...

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