29-05-2014 01:47 AM | New Zealand

Farmers upbeat despite dairy payout drop

Confidence in the rural economy remains high, despite Fonterra telling farmers to brace for a 19 per cent pay cut.

Fonterra's announcement yesterday, that it was decreasing this season's record payout by 25 cents per kg of milk solids to $8.40 and forecasting next season's payout to be $7, meant there would be $749 million less in the Waikato economy next season.

This season's 25 cent drop removed $82m from the Waikato economy overnight as the average farmer, whose herd produces 115,211 kg of milk solids, earns $28,802 less for their milk.
Full Story : Stuff.co.nz