“Global dairy trade prices have fallen sharply since we released our opening forecast for the season in May, with the overall index down 16 per cent over that period,” Fonterra CEO Miles Hurrell says.
“Reduced demand from key importing regions for whole milk powder is continuing to weigh on prices. While indications are demand will start to return over the second half of the 2024 financial year, we do expect the pace of demand growth to be subdued relative to initial expectations.”
Furiously cutting costs
Munro says they are continually looking for different ways to cut costs, including letting a staff member go, leaving herself and her whānau to run the farm on their own for the past three months with no days off, but she remains hopeful.
“We have two mortgages to pay, one on our herd and one on a rental property. We have higher interest rates, property rates, insurance etc.
“For us, it just means we may not be able to take our whānau for our yearly overseas holiday but we live in paradise, so what better way to use our own backyard as our playground and experience all it has to offer.”
She says their last resort is to sell their farm, ultimately “but that’s not on the cards just yet.”
Fonterra is scheduled to release its 2023 financial year annual results on September 21, and its annual meeting is on November 9.
