I supply BGA with milk, awaiting our new pricing. This mess...

I supply BGA with milk, awaiting our new pricing. This mess started with Fonterra paying over $8.00 to farmers ,and milk production soared. Then China all but stopped buying milk powder. They seem to love building a market up and as production peaks,pull out and prices tumble much the same as iron ore. So Fonterra now paying Nz farmers just over $4.00 for milk solids. You can imagine farmers with their milk incomes basically halved can't afford to feed the extra cows and take advantage of good chopper pricing to help bottom line, then milk production slides.
Throw in Russian sanctions.The lifting of EU quotas.Eu milk subsidies slashed, the Eu farmers are producing more milk to try and keep their bottom line in check.
MG took on Coles home brand milk and cheese [cheese it won off BGA look at BGAs sp now] and had to win suppliers to sure up their milk supply. They paid over the odds for where their markets were, milk powder and Coles home brand products don't leave a lot of margin for price volatility . MG also have very solid brands and is our largest processor it probably is in the oversold bracket but there is a lot of water to flow under the bridge before things get substantially better.
Throw Victoria in drought into that equation as well.
When you see farmgate pricing start to rise means the processors are chasing milk, markets have improved.