Lift in milk powder prices will lift confidence

Federated Farmers believes the announcement that the average price for whole milk powder has risen 21 percent will boost confidence, both in the farming and banking sectors.

“The announcement, based on Fonterra’s internet based sales platform, is very positive,” says Lachlan McKenzie, Federated Farmers Diary chairperson.

“Unfortunately this probably won’t affect of this season’s payout significantly. Because it’s the end of the season and most of our product has already been sold.

“However, leading in to next season, I certainly think it will add great confidence, this is especially important in the banking sector.

“This added confidence will help alleviated some of the financial stress on farmers and hopefully give them an opportunity to work together with banks to combat the strain farmers have been under recently.

“I imagine the darkest financial cloud for dairy farmers now, is the excessive costs from central and local government that just keep rolling in our front gate,” Mr McKenzie concluded.