A new industry report from Rabobank says farmers are in for a third season with a milk price "starting with a six" in its recently-released dairy seasonal update.
A hit for six in 2018/19 – New Zealand dairy farmers face a triple treat.
Rabobank forecasts a farmgate milk price of $6.40/kgMS for the 2018-19 season.
Dairy analyst Emma Higgins told Rural Exchange the next season should be profitable for most New Zealand dairy farmers.
“The northern hemisphere flush will be an influential pressure point for commodity prices at the start of the 2018/19 season and we anticipate that supply will outstrip global demand in the coming months,” Ms Higgins said in a statement.
This comes despite greater uncertainty surrounding the operating environment than usual.
The report also said a ‘big year’ is predicted for Fonterra, with the world’s largest dairy cooperative having some significant challenges ahead, including bedding down the new strategic partnership with a2 Milk Company and pressure to turn the Beingmate investment into a profitable partnership.
Watch the full interview with Emma Higgins above.