Bell Block farmers resilient in face of milk price drop

Bell Block dairy farmers are expected to cope with Fonterra’s 20 cent reduction in its milk payout forecast for this season-2015. The dairy co-operative has announced a fall in its farmgate milk price from $4.70 to $4.50 per kilogram milksolids (kgMS). But Bell Block farmers were under less financial pressure than their South Island counterparts who had borrowed significantly for dairy conversions and who had high operating costs. Established in the industry, they had a low-cost structure and low debt, so they would break even at a $4 kgMS payout. While the drop would generate caution and uncertainty, dairy farmers could remain confident in the industry’s long-term future.

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Categories: Bell Block News, Taranaki | Tags: , , ,

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