NZ processor expects two more seasons of low prices

Published 31 March 16

NZ dairy processor Westland Milk Products has told shareholders it expects at least two more seasons of low milk payouts in NZ. It has revised its predicted farmgate payout for the 2015/16 season (ending in May) to around 13-14ppl (NZ$3.90-4.00 per kilo of milk solids). This is a 3% reduction from last month’s prediction.

The news follows Fonterra’s recent reduction in its forecast farmgate milk price. Both processors have said that continued global oversupply, particularly from the EU and US, is keeping pressure on their prices.