Hamish Gow

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Dairy giants Murray Goulburn and Fonterra competed in a race to the bottom. cskk/Flickr

Murray Goulburn and Fonterra are playing chicken with dairy farmers

James Lockhart, Te Kunenga ki Pūrehuroa – Massey University; Danny Donaghy, Te Kunenga ki Pūrehuroa – Massey University, and Hamish Gow, Te Kunenga ki Pūrehuroa – Massey University

Two of the largest dairy cooperatives have been playing with farmers by pursuing a high price for milk when both should have taken into account fluctuations in the global dairy markets.
Australian and New Zealand dairy farmers need to get used to the low prices for milk as they represent the new norm in global markets. Dan Peled/AAP

Milk price cuts reflect the reality of sweeping changes in global dairy market

James Lockhart, Te Kunenga ki Pūrehuroa – Massey University; Danny Donaghy, Te Kunenga ki Pūrehuroa – Massey University, and Hamish Gow, Te Kunenga ki Pūrehuroa – Massey University

Cooperatives like Murray Goulburn and Fonterra and dairy farmers need to accept that lower milk prices will be the new normal in a more competitive global market.

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