New dairy season to “hit a six” – with shaky start possible for but strong finish anticipated
The 2018/19 dairy season is expected to “hit a six”, with a shaky start possible, but a strong finish anticipated, resulting in a third season with a “milk price starting with a six”, according to a new industry report.
In its recently-released dairy seasonal update A hit for six in 2018/19 – New Zealand dairy farmers face a triple treat, agribusiness banking specialist Rabobank says New Zealand dairy farmers have enjoyed a period of profitability with milk prices above breakeven – and the upcoming season will see this run continue.
Rabobank forecasts a farmgate milk price of NZD 6.40/kgMS for the 2018/19 season.
Report author, dairy analyst Emma Higgins, says the 2018/19 season should be profitable for most New Zealand dairy farmers, despite greater uncertainty surrounding the operating environment than would usually be the case.