New Zealand dairy giant Fonterra said yesterday [Monday] it expects “the most likely final payout” for next season to be NZ$4 (US$1.7) per kilogram of milk solids, down from NZ$5.3 per kilogram this season.
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This puts the payout from the dairy sector to the national economy at some NZ$4bn, down from the NZ$5.3bn it is expected to make this season. An average farmer will lose some NZ$91,000 in 2002-03.
Yesterday’s news indicates a further fall of NZ$0.50 per kilogram from February’s forecast of NZ$4.5 per kilogram. The decline is being attributed to lower commodity prices and the strength of the New Zealand dollar.
