The following need to change before a meaningful price recovery will occur. Not all need to happen, but several do, not just 1 or 2
- Russian ban on EU milk products must be lifted
- EU over-production must stop. Some member states have increased production significantly since quota's were dropped
- China must increase purchasing at least back to 2013 levels
- USA must not increase exports
- Fonterra must stop paying Aussie dairy farmers more for their milk than they pay their NZ farmers (who are also their company owners)
- Fonterra must grow branded value-add production 4-fold or more
- Forex must remain favourable
Many countries still subsidise dairy production. Current low prices don't necessarily hurt their farmers as much as NZ farmers. So NZ farmers have become the "swing producers" leading to massive ups and downs in farm returns. 10 years ago prices were much more stable year to year