ANZ's Fonterra 2020-21 season milk price projection NZD 5.75/kg milksolids
- 2019-20 unchanged at $7.15
Citing:
- significant deterioration in economic conditions in most parts of the globe
- more specifically the recent sharp fall in dairy commodity prices in the U.S. and Europe
- reduction in demand for dairy products from the food service sector
- has led to growing surpluses of milk • As a result "it's only a matter of time before prices
Info via Bloomberg
This will not have a big impact on the NZD, but it is a sign of domestic economy weakness - less money to dairy farmers. Dairy is a very substantial industry in NZ so less money for dairy farmers is a negative for spending in the economy, but also for business capex ahead.
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