Fonterra will 'bounce back' after dairy price slump

  • 10/08/2015
GETTY: Fonterra
GETTY: Fonterra

Fonterra is confident it will bounce back after a slump in dairy prices.

The dairy giant recently slashed its forecast payout to $3.85 per kilo of milk solids; the lowest it's been in about 10 years.

New Zealand First leader Winston Peters is now talking up the prospects of a recession, so how much could this hurt our economy?

Business and Economic Research Limited chief economist Ganesh Nana this morning joined Paul Henry to discuss whether Fonterra will ever return to being the company it once was.

"It has to bounce back; it’s how we put our products on the global market," says Mr Nana. "I think we've probably got to not overreact too much – there is strong competition but that's the world we live in."

Watch the video for the full interview with Mr Nana.