Fonterra update: Dairy farmers re-calculating again

Kiwi dairy farmers are re-calculating their cashflows yet again following Fonterra’s latest forecast milk price cut and taking steps on farm that Fonterra expects will see a production drop of 2% this season. The country’s biggest co-operative slashed its forecast final farm gate milk price to NZ$3.85/kg milksolids (MS) for the 2015-16 season. It also announced a forecast earnings per share range of NZ40-50cents/share with farmers likely to receive 65-75% of that under Fonterra’s d