Dairy farmers are facing a dismal milk 5 dollars 60 a kilogram payout forecast next season - because of the coronavirus crisis

Rabobank has lowered its predicted payout chiefly because less milk is likely to be consumed globally.

Senior analyst Michael Harvey says milk consumption will take a big hit in Europe and the United States and that will flow through to farm gate prices.

He says China is making a recovery but is expected to need less dairy products.