New Zealand Dairy Industry Under Pressure from Rising Costs in 2025
Sourse: dairynews.today
Despite record prices, New Zealand's dairy industry faces input cost increases and global volatility, impacting profitability.
New Zealand's dairy industry enters 2025 with promising prices as Fonterra forecasts payments up to NZD 10/kg of solids. However, producers are grappling with a significant 10% rise in feed costs, a 1% increase in fertilizers, and a 65% surge in fuel prices, threatening profit margins. Although exports have increased by 5% through April, yielding an added value of US $1.5 billion thanks to a weak dollar and strong demand, Rabobank warns of potential cooling in the second half of the year due to increased supply and global demand fluctuations. Despite these challenges, the outlook remains cautiously optimistic with opportunities for production and profitability growth in 2025.
