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Dairy farmers will be happy with the news that Rabobank's milk price forecast for 2019/20 remains at $7.15, but there is still a "big season ahead" says Emma Higgins.
Rabobank's Dairy Analyst told The Country's Jamie Mackay that the forecast was "not too surprising".
"There's a long time to go, but at this point in time, that's what our numbers are telling us".
The last six Global Dairy Trade Auctions have seen a reduction in Whole Milk Powder (WMP) which is the key ingredient in setting the milk price. Mackay asked if Higgins was "defying gravity" with a $7.15 forecast.
Higgins said that although Rabobank was keeping an eye on the GDT, the drop in recent results was something to be expected at this time of year.
"The reality is that we're moving into our seasonal hiatus normally when it comes to pricing anyway. We're moving through our downtime in the production season. Buyers tend to turn their attention to the Northern Hemisphere at this point in time".
"We think things are going to pick up probably more October, November of this year".
Also in today's interview: Higgins takes a look at global milk production, and how African Swine Fever and the US/China trade war is impacting New Zealand's primary industries.