Northland dairy farmers' earnings next season could be nearly $250 million less than last season, due to a drop in global dairy commodity prices.
The payout reductions will have an impact on everyone in the region, Northland Chamber of Commerce CEO Tony Collins predicted yesterday.
Fonterra yesterday announced a 30c reduction in its forecast farmgate milk price for the current season to $6.05kgMS. The forecast net profit after tax range is unchanged at 40-50c a share, meaning the forecast payout range before retentions is $6.45-$6.55.
Fonterra also announced a lower opening forecast payout for the 2012/13 season starting on June 1, reflecting an outlook for higher world dairy production flowing through to lower international dairy prices.
The opening forecast payout range before retentions for next season is $5.95-$6.05, consisting of an opening forecast farmgate milk price of $5.50kgMS and a forecast net profit after tax range of 45-55c a share.