ANZ cuts its forecast Fonterra 2014/15 milk price payout by 40 cents to $4.85/kg

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ANZ economists:

  • Have cut their forecast Fonterra 2014/15 milk price payout by 40 cents to $4.85/kg of milk solids
  • Have also placed their call for a March 2015 RBNZ rate hike “under review”
  • “We have today reduced our forecast for the 2014/15 payout to $4.85/kg (from $5.25), assuming a modest bounce back in global prices.
  • This sits well below the average cost of production for farmers and will have a significant impact on discretionary spending”
  • We’d also add that the dairy sector has a huge amount of exposure to floating (interest) rates of around 70%. A lower dairy price also has significant implications for the wider economy and monetary policy.
  • Moves in the OCR look a long way off, with our call for the next move to arrive in March now under review.
  • Expect the NZ dollar to remain under pressure.”

 
Source: ForexLive

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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