Lower forecast is $900m blow and spells tougher times for farmers

Lower forecast is $900m blow and spells tougher times for farmers
Fonterra cut its forecast farmgate milk price. (Image: Fonterra)
Rebecca Howard
News that Fonterra has cut its forecast farmgate milk price will be a blow for farmers who are struggling with high input costs.The dairy co-operative said on Friday it was now expecting to pay $8.20 – $8.80 per kg of milk solids (kgMS) with a midpoint of $8.50, which is down from $8.50 – $9.50 per kgMS and a midpoint of $9.00.It also lowered its milk collection forecast for the season to 1,465 million kgMS, down from 1,480m kgMS.The lower forecast strips out about $900m from Fonterra’s payout, which will now be $12.45 billion...

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