Fonterra chief executive Miles Hurrell says the popular Open Gates initiative is likely to go bigger next year.
The coop also announced a forecast earnings per share range of 45 to 55 cents, making the forecast total available payout to farmers in the 2017-18 season $7.20 to $7.30/kgMS, before retentions.
Chairman John Wilson says the revised forecast farmgate milk price reflects the ongoing rebalancing of supply and demand in global dairy markets.
“We are seeing growing confidence on-farm across the country and, with global demand for dairy strengthening, the signs are for a good start to the season for our farmers and their rural communities although following a challenging period of very wet conditions for some of our farmers,” says Wilson.
“The increased Farmgate Milk Price will be welcome news to farmers as they continue to invest in their businesses off the back of an improved 2016-17 season, with the usual reminder to budget cautiously especially in the early part of the season.”
Chief executive Theo Spierings says the coop is well positioned to take advantage of improving demand for dairy nutrition across our ingredients, consumer and foodservice markets.
“Increasing numbers of consumers in our global markets prefer dairy for their everyday source of nutrition, and that is converting into strong demand particularly in consumer and foodservice products,” says Spierings.
“Our forecasts are prudent given that we are still early in the season and we are starting with very low levels of inventory, and we are focused on continuing to demonstrate strong business performance so as to bring greater returns for our farmers.”