Fonterra Forecast Gives Dairy A Boost

Fonterra Forecast Gives Dairy A Boost

Source: Federated Farmers

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Federated Farmers dairy industry spokesperson Andrew Hoggard says the Fonterra announcement today will boost dairy farmer optimism and even more usefully, will ease their bank manager’s worries.

"It’s still early days but this is a very positive signal for the guys out there who are struggling and need to know there is some relief in sight."

Fonterra has signaled an increase in its 2016/2017 forecast Farmgate Milk Price of 50 cents to $4.75 per kg MS. The total payout to farmer for the current season is now expected to be somewhere in the region of $5.15.

"This will give farmers some cash in their bank accounts now and it will make their bank managers much more cheerful.

"Internationally markets are still volatile and we don’t want to rely on the global trading trends just yet, but this is a positive move and gives us room to be cautiously optimistic," Andrew says.

ENDS

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