05-06-2014 01:54 AM | New Zealand

Pressure builds on dairy payout forecast

The ink is barely dry on Fonterra's milk price forecast for 2014/15 and there are already signs that it could be revised downwards after the latest GlobalDairyTrade (GDT) auction showed a sharp and unexpected slide in whole milk powder prices.

Whole milk powder (WMP) - the most important product group for New Zealand dairy farmers - fell by 8.5 per cent to US$3590 a tonne - and was mostly responsible for the GDT Price index dropping by 4.2 per cent compared with the last auction a fortnight ago.

Fonterra last month forecast a $7 a kg farmgate milk price for 2014-15, down sharply from the record price of $8.40 a kg for the 2013/14 season, in response to a string of weak auctions.
Full Story : New Zealand Herald