DairyNZ has revised its breakeven milk price for the average New Zealand dairy farmer down 15 cents to $5.25 per kg/MS.
"Due to favourable weather conditions production has been higher than initially forecast leading to lower costs per kgMS," the organisation says.
Yet even at $5.25, the breakeven price is well above Fonterra's seemingly optimistic forecast farmgate milk price of $4.15 per kg/MS for the current season.
ASB economists cut their milk price forecast by 20 cents to $3.90, following prices falling for the fourth consecutive time at the fortnightly GlobalDairyTrade auction on February 17. The GDT Index fell by 2.8%, while the key wholemilk powder price fell a further 3.7%
As for the 2016/17 season, Westpac has dropped its forecast to just $4.60; ANZ, $5.00; and Westpac is at $6.00.