Further GDT drop leaves farmers uncertain

Further GDT drop leaves farmers uncertain

Another drop in the GlobalDairyTrade of 3.1 percent will be a huge disappointment to New Zealand’s dairy farmers.

“It goes without saying that the lowest auction price in five years is going to be a blow to the industry,” says Andrew Hoggard, Federated Farmers Dairy Chair.

“Dairy farmers were hoping to see a lift or at least a plateau to realise Fonterra’s $5.30 forecast in December. So this further drop increases the uncertainty of how realistic that goal is.

“Interesting to note, the Prime Minister said, at our National Council this morning, he believes the GDT has bottomed out and we are likely to see things improve going forward.

“We will wait with anticipation for Fonterra’s board meeting in December when they will review the payout, but there’ll be another GDT before then so who knows.

West Coast provincial president, Katie Milne, added that Westland’s payout will be hard to hold as a result of the GDT, with Westland selling more milk powder than anything else.

“Westland suppliers should be prepared that there may be a drop in the payout after the board meeting at the end of the month. However there’s nothing wrong with living in hope, and if it does not drop we will all breath a little easier” she said.

Mr Hoggard concluded with, “Farmers are practical people and already know its going to be a tight season.”

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