Fonterra, the large cooperative that controls the vast majority of milk production in New Zealand, has again lowered its forecast for farmgate milk prices for the 2015/2016 season.
The forecast is lowered 6% to $2.63 per kilogram of milk solids. Based on conversion factors, that puts the projected milk price slightly below $10/cwt. The previous forecast, at $2.80 per kilogram of milk solids, translates to about $10.50/cwt.
"This further reduction in the forecast farmgate milk price is the last thing farmers want to hear in what is proving to be a very challenging season," says Fonterra's Chairman John Wilson.
Milk production this season is also projected to be down 4% compared to last year.