Rising costs take the shine off high milk payout

Fonterra says interest rates and inflation have lifted well above its assumptions. (Image: Getty)

Fri, 24 Jun 2022

Fonterra expects to pay its farmers more than ever but rising costs will take the shine off the record-high payout. The dairy giant this week lifted the 2022-23 forecast farmgate milk price range to $8.75-$10.25 per kilogram of milk solids (kgMS) from $8.25-$9.75/kgMS. This increases the midpoint of the range, which farmers are paid off, by 50 cents to a record $9.50/kgMS. It tops the prior season’s forecast midpoint of $9.30. Times, however, are tough across the nation. Farmers, like everyone, are contending with annual in...

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