Northland dairy farmers have more hope for a cash injection with Fonterra lifting its forecast farmgate milk price for this season by 30c to $7.80 a kg of milksolids (kgMS).
But less welcome news affecting farmers all around the region came yesterday when Ballance Agri-Nutrients announced it was ending superphosphate and sulphuric acid production at its Whangarei fertiliser factory, with job losses for about half of the 38 staff now working on the Port Rd site.
The Fonterra increase on Tuesday - which follows a 50c kgMS lift to the forecast payout in May - would give dairy farmers $1.50kgMS more than last season, when many struggled financially dealing with drought.
The 50c boost three months ago lifted the forecast earnings of Northland's 980 dairy farmers with average estimated production of 100,000kgMS by $117.6 million over last season to $686 million.
This week's forecast increase would provide $29.4 million, lifting the region's projected dairy income to $715.4 million this season.
The latest increase - along with a previously announced dividend of 32c a share - amounts to a forecast cash payout of $8.12.
It would be in line with the record $8 to $8.10kgMS farmers received before retentions in 2010/11. Fonterra chairman John Wilson attributed the higher farmgate milk price forecast to continued strong international prices for dairy products.
Northland Federated Farmers dairy section chairman Ashley Cullen, of Maungaturoto, said the increase was very nice but forecasts could also move down and he would not be counting the extra cash until he saw it in his bank account in October next year.
"We don't know how the recent food safety scare could impact further down the track," he warned.
Ballance says fertiliser use has declined in Northland, where urbanisation had reduced farmland.
Manager of fertiliser operations, Greg Delaney, said it would cost several million dollars to keep the Whangarei acid plant compliant to continue manufacturing there.
Ballance will continue to process Marsden Pt oil refinery sulphur at its Whangarei site, which will sell fertilisers produced at Mt Maunganui.
Efforts are being made to find other jobs for staff to be laid off at Whangarei, either within the Ballance group or outside the organisation.