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10 Dec 2014
Drop in NZ farm gate milk price equivalent to -2.7% of NZ GDP - Westpac
FXStreet (Bali) - Dominick Stephens, Chief Economist at Westpac, notes that the drop from last season’s $8.40 NZ farm gate milk price to $4.70 is equivalent to a reduction of 2.7% of NZ GDP.
Key Quotes
“The general sentiment has been that farmers can weather one low payout. We suspect that the reality of a payout as low as $4.70 is going to dent that confidence."
"What is more, we are now forecasting a fairly low farm gate milk price of just $6.20 for the 2015/16 season, and that is assuming that global milk prices rise rapidly over 2015.″
“The drop from last season’s $8.40 farm gate milk price to $4.70 is equivalent to a reduction in income of $6.1 billion for the New Zealand dairy industry, or 2.7% of GDP.”
Key Quotes
“The general sentiment has been that farmers can weather one low payout. We suspect that the reality of a payout as low as $4.70 is going to dent that confidence."
"What is more, we are now forecasting a fairly low farm gate milk price of just $6.20 for the 2015/16 season, and that is assuming that global milk prices rise rapidly over 2015.″
“The drop from last season’s $8.40 farm gate milk price to $4.70 is equivalent to a reduction in income of $6.1 billion for the New Zealand dairy industry, or 2.7% of GDP.”