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New Zealand has the lowest farm milk price in the world

New Zealand agri-information webservice AgriHQ says New Zealand dairy farmers are getting the lowest milk price in the world. An analysis by the firm converted milk prices around the globe to a New Zealand pay formula of NZ dollars per kilogram of milk solids and found New Zealand at the bottom of the pay scale. Irish farmers are getting slightly more. China has the highest farm milk price with the U.S. second, Argentina third and the U.K fourth.

“Fonterra’s forecast farmgate milk price, which was the price setter in the NZ dairy industry, was $3.85/kg MS for the current season, the lowest in a decade. That compared to China at the other end of the scale at $11/kg MS, the United States at $8.15/kg MS, Argentina at $7.57/kg MS, and the United Kingdom at $6.95/kg MS. Of the countries analysed; Ireland’s payout of $6.10/kg MS was the closest to New Zealand’s.”

AgriHQ dairy analyst Susan Kilsby says part of the reason for New Zealand being the lowest pay is because it is the most dependent upon the global market. More than 95 percent of the milk produced in New Zealand is for the export market. Strong domestic demand has been the main reason U.S. dairy prices have held well-above the global price.

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