Reduced milk cheques will bring downturn ‘onto the farm’

THE downside of the massive cut of between 4c and 6c per litre in the April milk price shouldn’t be underestimated.

The fear is that there is more to come, after dairy-product returns to processors declined as much as 15c per litre, in raw milk terms, from the peak of the 2007 market.

Although it was overdue, the increase in the milk price in 2007 went beyond expectations. Unfortunately, that makes the “hangover” even worse.