[7 December/ Stuff]

Fonterra has decreased its forecast payout for the 2017-18 season by 35 cents to $6.40 per kilogram of milk solids. Based on DairyNZ production figures of 1.85 billion kilograms of milk over the season, the 35 cent decrease equated to lost income of $647 million for farmers. For the average farmer milking 414 cows producing 381 kilograms of milk each, the new forecast meant they would lose out on $55,206 of income. Fonterra Chairman, John Wilson said the lowered forecast reflected a prudent approach to the volatility, with the Global Dairy Trade price for whole milk powder decreasing almost 10 percent since 1 August.