Fonterra consumer business sale price jumps to $4.22b
The sale price of Fonterra’s global consumer and associated businesses to the world’s largest dairy company Lactalis has risen to $4.22 billion.
Fonterra has announced an opening forecast milk price range of $6.25 to $7.25/kgMS for the new season.
The co-op says the price range will narrow as the season progresses. The 2019/20 advance rate schedule has been set off $6.75/kgMS.
Chairman John Monaghan says this is a realistic opening forecast.
“We are having to look out more than a year into the future which is difficult, but what the information available is continuing to show us is that demand remains strong across key trading partners and this is reflected in GDT prices.
“We are giving farmers a wide range for the opening forecast milk price. It will be narrowed as the season goes on.”
Weather plays a significant role in determining global milk volumes, and therefore price.
Fonterra is forecasting New Zealand collections to be 1,520 million kgMS for the new season, up slightly on the current season.
However, Monaghan says there’s “still a lot of water to go under the bridge before we’ll have a clear view of what the season holds for both our co-op’s production and global dairy supply”.
Fonterra has also narrowed its 2018-19 forecast Farmgate Milk Price range by 20 cents to $6.30 - $6.40/kgMS.
This reflects favourable foreign exchange movements but slightly weaker than expected pricing for whole milk powder and skim milk powder.
The co-op has now contracted the majority of its farmers’ milk for the current season and has greater certainty on the likely closing Farmgate Milk Price. This is also reflected in the tighter forecast range, it says.
The Government has struck a deal with New Zealand's poultry industry, agreeing how they will jointly prepare for and respond to exotic poultry diseases, including any possible outbreak of high pathogenicity avian influenza (HPAI).
The conversion of productive farmland into trees has pretty much annihilated the wool industry.
OPINION: Productive whole farmlands conversions into forestry are becoming a thorny issue for the Government.
Thus far in 2025, the Hawke's Bay rescue helicopter crew have completed over 220 missions, resulting in numerous positive patient outcomes.
The New Zealand Food Network's (NZFN) fifth birthday celebrations have been boosted by a whopping five tonne meat donation from meat processor ANZCO.
Pukekohe vegetable growers farewelled 101-year-old Alan Wilcox in late July, celebrating his many achievements and reflecting the widespread respect in which he was held.
OPINION: Milking It reckons if you're National, looking at recent polls, the dream scenario is that the elusive economic recovery…
OPINION: Sydney has a $12 million milk disposal problem.