Income for Northland dairy farmers will reduce by $22.5 million under Fonterra's revised forecast payout for next season.
The dairy giant revised its 2018/19 forecast farmgate milk price from $7 per kg/MS to $6.75 per kgMS this week in response to stronger milk supply from the world's key dairy producing countries.
Northland's 1030 dairy farms supply about 90 million kg/MS each year. A payout of $7 as earlier announced would have fetched them $630m but $6.75 per kg/MS would earn $607.5m— down $22.5m.
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Federated Farmers Northland dairy chairman Ashley Cullen said $6.75 was still a good
payout for this year's milk supply but a lot could change in the volatile dairy market globally.