Fonterra offers asset investment system (e-Capex) to other manufacturers
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However, the flour-to-feed group forecast that milk prices will increase, if only due to higher feed costs for dairy farmers.
"We anticipate farmers will continue to invest in response to favourable prospects in beef, lamb and cereals. As a result of higher input prices, the UK farmgate milk price must only improve from its current unsustainably low levels," said Richard Inglewood, Carr's chairman.
The comments come amid an ongoing milk price battle in the UK dairy industry, with milk producers arguing that farmers’ profits have been trimmed by supermarket price-cuts.