Milk prices nudge break-even point for farmers | eDairy News

Milk prices nudge break-even point for farmers

It was the second consecutive rise in auction prices after sharp falls in the previous two sales and returns appear to have steadied.

Of the eight products offered for sale, four rose and four dropped in price.

The key whole milk powder commodity, which determines Fonterra’s payout to dairy farmers, rose 2.4 percent to $US2924 a tonne, which is around the average break-even point for suppliers.

AgriHQ dairy analyst Susan Kilsby said the auction was, overall, a positive result for farmers.

“Buyers will be aware that New Zealand dairy farmers are having a strong finish to the production season which means there is extra milk powder coming on-line, so in this environment it is very positive to see whole milk powder prices creeping back up.”

The sharpest falls in the latest auction were for buttermilk powder and cheese, which had been under pressure because of strong competition from European producers.

The volumes sold were slightly higher than the previous auction.

Last month, Fonterra reaffirmed its forecast milk payout at $6 a kilo of milk solids, with an added 45 to 55 cents to be paid from the co-op’s value-added consumer business.

Small Canterbury producer Synlait said price volatility was putting pressure on its forecast payout of $6.25/kg and could even result in a fall below $6.


Source: RadioNZ



Any claim arising from the information contained on the eDairy News website shall be submitted to the competence of the ordinary courts of the First Judicial District of the Province of Cordoba (Primera Circunscripción Judicial de la Provincia de Cordoba), Republic of Argentina, in the city of Córdoba, excluding any other jurisdiction (Federal jurisdiction is also excluded).


Criteria in the moderation of comments that eDairy News will take into consideration in all its publications.

  • They will not be considered insults of any kind against anyone,, whether a user, moderator or publisher. Complaints made with the name and surname of the author of the commentary will only be accepted after confirmation by the moderator.
  • Unsubstantiated and gratuitous destructive criticism or expressions of bad taste, whether offensive, racist or xenophobic.
  • SPAM, (Insert links to web pages not related to the subject, provide emails, etc...)
  • Comments that are meaningless with the footnote or the dairy sector.

Related posts