Thursday, Oct 11, 2018
Since Sept 27, 1879
Retail $1.80 Home delivered from $1.15
THE INDEPENDENT VOICE OF MID CANTERBURY
May turns 100
P3
On the podium P24
New lambs on the block
FULL STORY
P4
PHOTO TIM CRONSHAW 081018-TC-0060
Milk cut to hit economy TIM CRONSHAW
TIM.C@THEGUARDIAN.CO.NZ
Farmers are not alone in being out of pocket from Fonterra’s lower milk price forecast of $6.25 to $6.50 a kilogram of milksolids as it is set to remove $50 million to $100m from the Mid Canterbury economy. Within the province farmers face losing $82,500 to $165,000 in income from the 25c to 50c/kg cut yesterday to the September forecast of $6.75/kg for the 201819 season. Nationally, the drop will re-
sult in $380m to $760m slipping through the cracks of the economy. Fonterra revised the expected price because global milk supplies are stronger at this stage than buyer demand. The latest cut follows a 25c/kg prune in September. Federated Farmers Mid Canterbury dairy chairman Chris Ford said everybody in the province would feel the lower milk price in some way. The payout drop would result in $160,000 of revenue being re-
moved from his 1000 cow farm, he said. “No one likes a drop in the payout. Once again, it’s money off the bottom line and with the lowering business confidence it is less money spent in the district. “That $160,000 is a nice new tractor.’’ Ford said farmers would understand that the milk price had been dropped because of a global over-supply of milk, but it was a pity this was not offset by the lower dollar the past few weeks. The co-op has increased its
own forecast of New Zealand milk collection volumes by 1.3 per cent to 1550 million kilograms of milksolids as a result of good growing conditions. Fonterra chief executive Miles Hurrell said the change to the farmgate milk price forecast was because global milk supplies were stronger than demand at the moment. “We are still seeing strong production coming from Europe, United States and Argentina. While the hot weather in Europe has slowed down the region’s pro-
FLY AWAY – WITH GLUYAS NISSAN! Purchase any used vehicle from Gluyas Nissan this month, and get a $1000 House of Travel voucher! That’s right, pay window price for any used vehicle from Gluyas Nissan this month, and a $1000 travel voucher is all yours – T’s and C’s apply.
SEE SCOTT AND KENDALL AT GLUYAS NISSAN TODAY!
duction growth, it is still tracking ahead of last year. US milk production is up slightly and Argentina’s is up 6.8 per cent. Hurrell said the New Zealand season had got off to a positive start, mainly because of good weather and early calving in the South Island.
CONTINUED P3
Gluyas Nissan
79 Kermode Street | (03) 307 5800 Brian Higgins Sales Consultant Mob 027 431 6343 Kendall Sandrey Sales Consultant Mob 027 486 0016 Scott Donaldson Sales Manager Mob 027 225 5530
www.gluyasnissan.nz
Ph 03 307 7900 to subscribe!