[18 October/The Country]

ASB decreased its milk price forecast by 25 cents to $6.25 due to a fall in global dairy prices. Prices dropped 0.3 percent this week, and prices had fallen at nine out of the previous 10 auctions. Individual product results were more mixed. According to ASB Senior Rural Economist, Nathan Penny, the recent falls came as New Zealand production continued to show significant strength. Season-to-date production was over 5 percent ahead of the same time last year. Fonterra lifted its forecast milk collections growth forecast from 1.3 percent to 3 percent. Mr Penny added Fonterra was losing market share and its collection forecasts were conservative. ASB had doubled its 2018-19 production growth forecast from 2 percent to 4 percent. Cashflows were positive and farmers started to put the dairy downturn behind them.