Milk Glut Drags Fonterra Forecast Down to $9.20/kgMS
A milk glut around the world shows no sign of easing, putting downward pressure on farmgate milk prices for the next few months.
The co-op is currently tracking 8% down on last season on a weekly basis.
Fonterra chairman John Wilson says farmers are responding to the tough economic conditions.
"With cow numbers down, less supplements being fed and challenging weather conditions for much of the country, we now expect production to be down by more than 5% for the season," says Wilson.
Last year, the co-op collected 1,614 million kgMS, up 2% on the previous season.
