Period: July 24 – August 4, 2017
On July 27, Fonterra announced to the New Zealand farmers a forecast Farmgate Milk Price for the 2017/2018 season increased by 0.25 New Zealand Dollars, to NZD 6.75 per kilogram of milksolids (kgMS) or about 4.17 €/kgMS. Converted into milk, the price increased roughly from 29.7 to 30.9 €/100kg of milk 4.0% fat and 3.4% protein mass/mass (ref. Germany, current change of reference: 1NZD = 0.618€).
On July 28 the co-operative lifted the milk price for its Australian suppliers by 0.20 Australian Dollars, pushing the average amount paid to AUD 5.50/kgMS. Some agricultural lenders expect the higher income will result in reduction of existing debt, as well as further producer investment into their farms.
The new dairy season in New Zealand started in June with a milk production 21.09% higher than June last year. However, this percentage may be misleading, because June is usually the month with the lowest production in the year.
– Dairy season: July, 1st – June, 30th (Australia), June, 1st – May, 31st (New Zealand);
– Source: USDA summarized by the CLAL Team