Sliding dairy prices undermine Fonterra forecasts, may crimp NZ growth

Wed, 16 Jul 2014

By Suze Metherell July 16 (BusinessDesk) - Prices of dairy products may extend this year's 34 percent slump, economists say, adding to pressure on Fonterra Cooperative Group to lower its milk payout forecast and taking some of the steam out of New Zealand's economic expansion. The GDT Price Index dropped 8.9 percent to the lowest level since December 2012 in the latest GlobalDairyTrade auction, the 10th decline in past 11 sales. ASB rural economist Nathan Penny says his firm is reviewing its own forecasts for Fonterra's payouts to its far...

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