Fonterra shaves 50c off forecast milk price
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
The co-op is also forecasting 2023 normalised earnings guidance of 45-60c/share.
Fonterra chief executive Miles Hurrell says the longer-term outlook for dairy remains positive.
“And in the medium-term, we expect to see an easing in some of the geopolitical events, namely the Covid-19 lockdowns in China and the economic challenges in Sri Lanka.
“This has been reflected in our earnings guidance and forecast farmgate milk price for the 2022/23 season.”
Hurrell says the co-op continues to monitor a number of risks.
“The strength of our balance sheet means we remain in a strong position to weather uncertainty and market volatility.
“Our ability to refocus our product mix through our diverse and flexible operations footprint means the co-op’s milk will continue to be delivered to wherever the most value can be obtained for our farmer owners.
“The future for our co-op is exciting,” says Hurrell.
