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Fonterra reduces farm pay price again
New Zealand dairy cooperative Fonterra has cut its forecast farmgate milk price for the current season by 20 cents to $4.50 (nz) per kilogram of milk solids. The cut would result in a $370 million reduction in New Zealand farmer income this year.
This is on top of a 60-cent cut in December. It is estimated the break-even point for New Zealand dairy farmers is $5.40 per KgMS.
The Cooperative cites expected increased milk production in New Zealand, Europe and the United States and continued weak global demand as the reasons for the cut.
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