Tuesday, 08 March 2016 12:09

‘Bitter pill’ for farmers

Written by 

Today's announcement of a further 25c drop in the current season forecast farmgate milk price is a "bitter pill" for farmers to swallow, says Fonterra Shareholders' Council chairman Duncan Coull.

The 2015-16 forecast farmgate milk price dropping from $4.15/kgMS to $3.90/kgMS is reflective of the current market conditions.

Coull says: "Farmers understand what the market realities are and continue to make adjustments where they can, but today's announcement, coming so close on the heels of January's 45 cent milk price reduction, will magnify the effects on our Farmers' businesses.

"This news is difficult for us to hear and for our co-op to give however, that it was provided in a timely manner at least lets us know exactly where we are placed and enables us to prepare accordingly.

"Farmers now need their co-op to drive the business hard, execute strategy, and deliver cash to them. In essence, farmers want to see the full benefits that the cooperative model offers and we will all be watching March's interim results with great interest.

"This current environment is no doubt placing added personal stress on farm so it's imperative we keep in touch with our neighbours, friends and families, and all support each other where we can.

"I also ask that farmers stay connected with their co-op and contact their local Shareholders Councillor if they have any questions, need advice, direction or support."

More like this

Fonterra back in the black

Fonterra chief executive Miles Hurrell says 2019/20 was a good year for the co-op, with profit up, debt down and a strong milk price.



Fonterra back in the black

Fonterra chief executive Miles Hurrell says 2019/20 was a good year for the co-op, with profit up, debt down and a strong milk price.

Strategy to reduce heifer mastitis

First calvers are more prone to mastitis than older cows. According to DairyNZ, farmers must choose a strategy that best suits their herd, farm team, and budget.


Live cattle exports in limbo

The fate of 28,000 cows in quarantine in New Zealand and supposedly destined for China in the coming weeks hangs…

Farm values down — REINZ

A floating and volatile situation – that’s how the Real Estate Institute of NZ rural spokesperson Brian Peacocke describes the…

Putting farmers first

The NZ agriculture sector is more than just a job for CRV Ambreed’s new managing director James Smallwood.

Graziers quitting!

Some Southland farmers who graze dairy cattle in winter say they will not do it next year.

Machinery & Products

Mowers get a makeover

Well known throughout New Zealand over the past 18 years, Pottinger has redesigned its rear-mounted Novadisc mowers to incorporate a…

Hardy spotlight

High quality, reliable lighting is essential for anyone involved in agriculture or the great outdoors.

Simmm twin water blasters

Italian made Simmm Power Cleaner 100/11 and Power Gun 100/11 single-phase (230 volt) electric water blasters are proving popular in…

OPD argument raging on

A stoush is brewing with the Federal Chamber of Automotive Industries (FCAI) heavily criticising Farmsafe Australia’s recent Safer Farm Report.

» Latest Print Issues Online

Milking It

Cows and earthquakes

OPINION: It has long been suggested that animals have senses that humans don’t, and often behave differently than usual shortly…

Battle is on

OPINION: One of Australia’s biggest dairy businesses is back on the market after the Federal Government knocked back a bid…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter