News milk
More than a billion extra in record year for kiwi farmers
The 2024-2025 production season promises to be another record year for New Zealand dairy farming. Based on the current forecast price of Fonterra, there will be a generous increase in milk earnings per kilo than in the Netherlands.
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Fonterra’s latest forecast assumes that NZ$10,08 per kilo of milksolids (fat and protein combined) will be paid. At the current exchange rate and an average of 9% fat and protein, that works out at a milk price of €60,83 per 100 kilos. This is excluding any dividends.
The previous milk price record in New Zealand was in the 2021-2022 production season, when an average milk price of NZ$8,32 per kilo was paid. At the exchange rate at the time, that was roughly €55,60 per 100 kilos.
Compared to last year, the high milk price this season will bring an extra NZ$1,76 billion into the coffers of the dairy industry, according to Dairy NZ. Converted to euros, that is more than €956 million.
Annual income
The New Zealand Dairy Association also calculates that an average farm with 164 hectares of land and 454 dairy cows can expect an income of the equivalent of €1.059 million this year, which is almost €220.000 more than last year. Of the total income, more than €293.000 remains available for both family spending and further investments. The calculated net surplus is set at almost €61.400, considerably more than the net loss of just over €4.600 over the previous production year.