A steady WMP price is not what New Zealand’s dairy farmers
will be hoping for, after Fonterra’s announcement this week of
a 2015/16 farmgate price forecast of NZ$5.25/kg MS (A$5.21).
Although it is broadly in line with market expectations, the
forecast and associated advance rate of NZ$3.66/kg MS will
maintain the cashflow pressure on a large number of farms, with
milk cheques through the approaching winter likely to be
particularly grim. Rival processors have also announced forecasts,
with Westland anticipating NZ$5.60-6.00/kg MS and Open
Country flagging a payout in the range of NZ$4.75-4.95/kg MS.