The weakening Chinese yuan is decreasing consumer purchasing power for dollar-priced dairy products, according to Fonterra-based dairy co-operative New Zealand. With the yuan experiencing its largest drop in 25 years in August, Chinese consumers are paying more for imported products, like New Zealand. The economic slowdown has contributed to the dairy exporter's worst annual loss, which it is expected to report next week. However, the firm has stuck to its farmgate milk price forecast of NZD6.25 ($4) to NZD7.25 per kg of milk solids for 2019/2020.
The weakening Chinese yuan is decreasing consumer purchasing power for dollar-priced dairy products, according to New Zealand-based dairy co-operative Fonterra. With the yuan experiencing its largest drop in 25 years in August, Chinese consumers are paying more for imported products, like Fonterra. The economic slowdown has contributed to the dairy exporter's worst annual loss, which it is expected to report next week. However, the firm has stuck to its farmgate milk price forecast of NZD6.25 ($4) to NZD7.25 per kg of milk solids for 2019/2020.