NZ dairy farmers face squeeze amid lower payout, rising costs

Dairy farmers are getting a lower payout for milk, but their costs are rising for goods and services like feed, fuel, and freight according to just released figures.

Stats NZ said the prices received by dairy farmers fell 4.8 percent in the September 2018 quarter, due to a lower farm-gate milk price.

In contrast, their costs rose 1.5 percent - mainly influenced by higher prices for animal feed, fuel, and freight.

"Dairy manufacturers paid less to buy raw milk in the latest quarter," said business prices manager Sarah Johnson.

"They also received higher prices from our export markets and local customers," she said.

NZ dairy farmers face squeeze amid lower payout, rising costs
Photo credit: Supplied

Ms Johnson said it's important to note there's often a lag time between changes in costs and what businesses charge customers.

The data showed prices paid by dairy product manufacturers were down 3.7 percent due to the lower farm-gate milk price. In contrast, they received higher prices (up 6.5 percent), mainly due to higher whole milk powder prices.

Prices for other dairy products  butter, cheese, milk, and cream  also rose.

Newshub.

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