Dairy farmers prepare for lower returns

Dairy farmers are bracing themselves for lower returns.

They've been told they might have to settle for prices lower than $6.30 this season.

Dairy Exporter editor Glenys Christian says the strong New Zealand dollar is a big concern, but unfortunately there's not much farmers can do about it.

"No one would be in dairy farming if they didn't accept there's a lot of volatility involved. They've got to take the ups with the downs, and they'll be pretty well prepared as best they can for any drops that might be coming."

Glenys Christian says the continuing drop in international prices is due to more competing nations exporting dairy products.

Ms Christian says dairy farmers have been saving for a rainy day - and this could be it.

"They've been warned by Fonterra not to bank on anything too substantial by way of recovery. This is just going to make them perhaps tighten their belts a little bit more."

Ms Christian says many will now realise just how the continued strength of the dollar is hurting exports.

Image: NZ Herald