Wednesday, 03 February 2021 15:46

Fonterra lifts 2020/21 forecast Farmgate Milk Price range

Written by  Staff Reporters
Fonterra chief executive Miles Hurrell. Fonterra chief executive Miles Hurrell.

Fonterra announced today that it will lift its 2020/21 forecast Farmgate Milk Price range to $6.90 - $7.50/kgMS.

 

The midpoint of the range, which farmers are paid off, has increased to $7.20/kgMS.

Fonterra chief executive Miles Hurrell says the lift is a result of strong demand for dairy, which is demonstrated by the continued increase in Global Dairy Trade (GDT) prices since the co-op last revised its milk price at the beginning of December.

“In particular, we’ve seen strong demand from China and South East Asia for whole milk powder (WMP) and skim milk powder (SMP), which are key drivers of the milk price,” Hurrell says.

He says the lift is good news for New Zealand dairy farmers.

“It would see the Co-op contribute almost $11 billion to the New Zealand economy through milk price payments this year, which helps support the wellbeing of rural communities.

“Now that we’re through the peak of the 2021 milking season, the impact of any changes in global market dynamics is reducing and our view of the season is firming up,” he says.

Hurrell says the co-op is keeping a close eye on a number of factors, including New Zealand weather conditions, expected challenges from further waves of Covid-19, and increasing milk production in the Northern Hemisphere.

Fonterra will provide more detail on its overall performance and full year earnings guidance when it announces its 2021 half-year results on 17 March.

More like this

Dairy goes gangbusters

China's growing appetite for New Zealand dairy products is showing no signs of abating.

Bad Week

OPINION: It's been a bad week for Fonterra. 

National

Arla eyeing $1b online sales

European cooperative Arla is fast tracking plans to become the trading bloc’s dairy market leader for e-commerce as more consumers…

DairyNZ sets the record straight

DairyNZ has launched a major public information programme to give farmers an accurate assessment of the Climate Change Commissions report…

Dairy's golden run continues

Global dairy prices have continued their golden run, with the Global Dairy Trade auction recording its seventh consecutive rise in…

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Bad Week

OPINION: It's been a bad week for Fonterra. 

Nothing beats milk

OPINION: Immune system support and disease prevention are top of mind for Americans stuck at home during Covid lockdowns and…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter