Talk Money: August 10, 2015

Talk Money: August 10, 2015

Rural economies will be $2.5 billion worse off after Fonterra cut its forecast payout to farmers for this season.

The forecast payout has been cut from $5.25 to $3.85, which is a long way below the record payout farmers enjoyed for the 2013/2014 season.

Fonterra also hopes to pay its shareholding farmers a dividend of between 40 and 50 cents.

But that is well below Dairy New Zealand's estimated breakeven point of $5.40.

Watch the video for the full Talk Money.