Grim forecast expected for dairy farmers

Author
Newstalk ZB staff,
Publish Date
Tue, 26 May 2015, 5:52AM
Fonterra is expected to make its new season forecast announcement any day now. (Getty Images)
Fonterra is expected to make its new season forecast announcement any day now. (Getty Images)

Grim forecast expected for dairy farmers

Author
Newstalk ZB staff,
Publish Date
Tue, 26 May 2015, 5:52AM

It's picked to be grim news for dairy farmers, ahead of Fonterra's new season opening forecast announcement.

The co-operative's board is meeting this week, against a backdrop of flagging global commodity prices.

ANZ Rural Economist Con Williams expects Fonterra to announce a range between five and $5.25 for the milk price, and an advance rate around the mid $3 mark.

"It's going to be pretty tight for farmers through 15/16 season to balance their books."

KPMG's Brent Love told Newstalk ZB farmers are realistic and they're not expecting much, but if the number's below five it will put a lot of pressure on them.

"I think dairy farmers at the moment are just looking to get that over with, get a number, get an idea, get a plan and get on with the first half of the 2015/2016 season."

Con Williams says given the challenges the sector's facing right now, he wants Fonterra to give farmers monthly price updates, rather than quarterly.