The dairy cooperative Fonterra announced on Wednesday that it the ex-farm price for milk deliveries in the next season 5 on 4.75 a $ per kgMS will reduce.
In the current market, it could no longer pay, but assumption, that in the further course of the 2016/17 season again 5 A$ paid per kgMS. This forecast is based on an exchange rate of the Australian dollar (A$) of about 74 cents. Later higher revenue for milk products is expected.
Also the competitor Murray Gouldburn had announced earlier this week that the redemption price for milk from 1 July on A reduced$ 4.31.
An Australian competition and consumers organization reviewed the decisions of the milk processors. The local cartel authority threatens sensitive penalties, it should have come to price fixing.
The world price for milk has fallen since 2014 due to an oversupply and weak economic activity in China by 60%.
