Farmers were trudging around a little deeper in the mud today after a fall in Fonterra's expected payout to dairy farmers.

Fonterra has drastically cut its forecast Farmgate Milk Price, with the midpoint falling from eight-dollars-per-kilogram of milk solids to just seven-dollars.

It's blaming reduced demand for whole milk powder from China.

Federated Farmers Dairy Chair Richard McIntyre told Heather du Plessis-Allan that it’s a challenging time for farmers.

He says they've got high interest rates, high input costs, and now a milk price well below the breakeven price.

LISTEN ABOVE

Farmers were trudging around a little deeper in the mud today after a fall in Fonterra's expected payout to dairy farmers.
Fonterra has drastically cut its forecast Farmgate Milk Price, with the midpoint falling from eight-dollars-per-kilogram of milk solids to just seven-dollars.
It's blaming reduced demand for whole milk powder from China.
Federated Farmers Dairy Chair Richard McIntyre told Heather du Plessis-Allan that it’s a challenging time for farmers.
He says they've got high interest rates, high input costs, and now a milk price well below the breakeven price.
LISTEN ABOVE

With a straight down the middle approach, Heather du Plessis-Allan Drive on Newstalk ZB delivers the very latest news and views to New Zealanders as they wrap up their day.