Market downturn and milk price drop loom

MILK processors are coming under extreme pressure from dairy farmers to minimise price reductions as they meet to set April prices.

Farmers fear a cut of up to 5 cent per litre and a possible further reduction in May, after strong warnings from the processors that the current milk price cannot be sustained, due to a sharp downturn in the world market for dairy products.

Farmers warn that a big price cut would be devastating because of the huge increase in production costs over the past six months.