New Zealand farmers operating below break-even costs
The New Zealand Herald reports that with today's soft dairy auction last week's farmgate milk payout forecast is already under pressure.
"Fonterra last week cut its farmgate milk price forecast for the 2015/6 season to $4.15 a kg of milksolids from a previous forecast of $4.60 a kg in response to weak international prices. The average break-even point for most farmers has been estimated at $5.40 kg."
Oversupply and weak demand are both weighing on New Zealand's milk export market.
The kiwi dollar fell to a session low of 0.6462 on the auction results today but has completely recovered and is trading at 0.6494.
