[23 November/ Stuff]

Federated Farmers remained optimistic that Fonterra’s forecast price of $6.75 per kilogram of milk solids would be maintained in December, unlike most other analysts who believed it would decrease to around $6.50 per kilogram. If the price did decrease to this level, it would mean a reduction of almost $500 million for the economy and a $39,000 decrease in income for the average farmer, based on an average 419 herd size that milks 373 kilograms of milk solids per cow. ASB Rural Economist, Nathan Penny said prices at the Global Dairy Trade auction had decreased four times in a row, resulting in around a 10 percent decrease. The European Commission has started to sell skim milk powder below its purchase price in an attempt to clear its two year stockpile before the product began to spoil.