NZ farmers could be left without July milk cheque

Published 18 May 15

Many farmers supplying New Zealand dairy co-operative Fonterra could be left without a milk cheque in July. This is because Fonterra’s 2014/15 forecast milk price started high last May at $7.00/kg MS (kilos of milk solids) then saw a series of cuts, dropping to $4.50/kg MS by April. As a result, Fonterra has already paid out a large proportion of its forecast price in advance. To rebalance the figures over the whole season, payments will need to fall over the next few months. The price drop has been so steep it may take July’s payment to zero for many farms.