[22 November/ Radio NZ]

The latest decrease in global milk prices has made dairy farmers dissatisfied and anxious. Whole milk powder was at its lowest level since October 2016 after a 2.7 percent decrease at the Global dairy trade auction to USD2778 per tonne. Whole milk powder prices determine farmer pay-out, and most needed USD3000 per tonne to break even. Federated Farmers Dairy Chair Chris Lewis said the price decrease made more sense after recent news from Fonterra that milk production increased three percent in October. Mr Lewis said the recent auction was concerning, and dairy farmers would be hoping the global dairy market was strong and the USD stayed below 70 cents. ASB decreased its forecast to $6.50 per kilogram of milk solids, and expected Fonterra would revise its forecast pay-out down from $6.75 before the end of 2017.