6 Jul 2015

Minister confident dairy farmers will pull through

6:04 am on 6 July 2015

The Primary Industries Minister says he is confident most dairy farmers will be to able to farm their way through the low milk prices.

Nathan Guy

Nathan Guy Photo: RNZ / Alexander Robertson

But Nathan Guy says those with high debt levels will need to start talking with their banks now to work out a plan on how to do that.

With international dairy prices continuing to dive, analysts said it was likely to be the 2016-17 season before farmers would see any sustained price recovery.

Mr Guy said banks were very aware of the situation.

"And that's something that each individual farmer needs to reach out to their professional advisors, whether that's their accountant or bank, and do their line by line cash flow analysis, work closely with their bank to get through.

Dairy farm at Apiti, Manawatu.

Dairy farm at Apiti, Manawatu. Photo: RNZ / Alexander Robertson

"Farmers can costs and they're doing that as we speak and I'm sure that most will get through this situation that they find themselves in."

Mr Guy said the Government was doing all that it could to support dairy farmers through tough times.

"Whether it's irrigation, new market access with Korea and Taiwan and working hard to get the Trans Pacific Partnership across the line as well."

Mr Guy said the medium-to-long term outlook for dairy remained extremely strong.

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