The
NZ economy is going down a slippery slope and will get worse if this
TPP is signed.
Call
for the ambulance!
Westland
slashes forecast milk payout
30
July, 2015
Westland
will decide on its final 2014/15 payout in September. Westland Milk
Products, New Zealand's second-largest dairy co-operative, cut its
forecast milk payout to farmers by 10c for the current season and by
$1 for next season, in the face of sustained weakness in global dairy
prices.
The
Hokitika-based company will pay $4.80 to $4.90 per kilogram of milk
solids for the 2014/15 season, with the final payout to be determined
at the September board meeting, it said.
The
forecast payout for the 2015/16 season was slashed to between $4.60
and $5/kgMS, from a previous band of $5.60 to $6/kgMS.
Prices
for whole milk powder, the country's key commodity export, have
plunged this year, and dropped an unexpectedly large 10.7 per cent in
the GlobalDairyTrade auction this month.
Dairy
prices are now expected to remain lower for longer than previously
forecast, amid higher global supplies, weak demand in China and an
import ban in Russia on European dairy products, which are being sold
into other markets.
"Price
volatility is at extreme levels with a fall of more than 20 per cent
in one month, with prices in New Zealand dollars now lower than
during the global financial crisis," said chairman Matt O'Regan.
"Demand
from China remains soft and is unlikely to firm up before the end of
this calendar year.
"The
ongoing sanctions against Russia limit purchasing activity from this
large global dairy importer, especially from Europe.
"This
makes the milk oversupply even more of a problem for New Zealand
exporters, as European competitors look more aggressively to the
international market to sell."
Fonterra
Co-operative Group, the world's largest dairy exporter, is expected
to lower its forecast payout to farmers for this season following its
board meeting next month. The Auckland-based company currently
forecasts a payout of $5.25 per kilogram of milksolids for the
2015/16 season, from $4.40/kgMS last season and a record $8.40/kgMS
the previous season.
Dairy
NZ estimates $5.70/kgMS is the industry average breakeven point for
most farmers.
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