Fonterra's milk forecast now in "Severe" scenario
Fonterra's latest forecast milk payout has just been released, positioning it squarely in line with the severe scenario painted by the Reserve Bank. The dairy cooperative has just announced it'll cut its payout per kilogram of milk solids from a forecast four dollars 15, to three dollars 90. Fonterra has also told external suppliers they need to cut their charges by at least 10 percent....prompting claims the company is bullying small businesses and using them to cover their working capital shortfall. Will Wilson is an agricultural consultant, company director and part owner and director of several dairy farms.