Todays newly released dairy prices by www.agridata.co.nz/news7.asp, and this article should make dairy farmers budget in the $4.5-5.25/kg ms rather than $6.00!! Dairy giant Murray Goulburn will cut its milk price to farmers by 26% from February 1, on the back of a massive slump in global prices reports The Weekly Times. MG chief executive Stephen O'Rourke said farmers would be understandably dejected by the decision, but he said the co-operative had to deliver what the market paid. MG currently pays its farmers about 42 cents a litre or $10/kg (butterfat equivalent). That price will fall to 31 cents a litre or $7.55/kg from February 1. Mr O'Rourke said the real driver for the cut was a collapse in international prices ``like we haven't seen before''. International milk powder, cheese and butter prices started falling in July-August. But the past three weeks had seen a massive slump. Mr O'Rourke said cheese was now selling at just $US2600-$2800, butter less than $US2000, and rumours that skim milk powder is being sold at $US1600 a tonne , which equates to about 25 cents a litre. He said some buyers were struggling to find credit and insurance, while others were sitting back waiting to see if prices fell further. "We're seeing special deals offered at crazy numbers,'' he said. One Murray Goulburn supplier said the move by the company could devastate farmers.
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