Waikato braces as dairy farm income tumbles

The Waikato is to suffer a $780 million blow as last summer’s drought and falling milk prices combine to knock $120,000, or one fifth, off the average dairy farm’s income.

Maf predicted in July that the drought and falling payout would cost the average Waikato dairy farmer $60,000 but doubled its prediction in its latest report this week.

Last month Fonterra slashed 60 cents from its predicted payout for the 2008/09 season, to $6, costing the average Waikato dairy farmer producing 100,000kg of milksolids $60,000.