Thursday, 23 September 2021 08:46

Fonterra's forecast milk price remains unchanged

Written by Sudesh Kissun

font size decrease font size increase font size
Print
Email

Fonterra has retained its 2021-22 forecast farmgate milk price range.

Fonterra has retained its 2021-22 forecast farmgate milk price range of $7.25 - $8.75/kgMS, with a midpoint of $8.

The co-op has also announced a 2021-22 earnings guidance range of 25-40c/share.

Fonterra chief executive Miles Hurrell says the strong milk price is likely to continue.

“A high milk price is good for farmers and good for the New Zealand economy.

“However, this does have the potential to squeeze our sales margins and impact earnings.”

Hurrell says the impact of COVID-19 continues to be felt, particularly across the supply chain.

“We expect competitive tension in the global shipping market to continue this financial year. We have largely been able to mitigate this thanks to the strength of our Kotahi partnership which has allowed us to keep our product moving through the supply chain.”

The co-op’s final payout for last season is $7.74/kgMS; comprising farmgate milk price of $7.54/kgMS and a dividend of 20c/share.

Featured

High commodity prices, farmer optimism bode well for event

The 2025 South Island Agricultural Field Days (SIAFD) chairman, Rangiora farmer Andrew Stewart, is predicting a successful event on the back of good news coming out of the farming sector and with it a greater level of optimism among farmers.

Accident triggers traffic alert in barns, sheds

WorkSafe New Zealand is calling on farmers to consider how vehicles move inside their barns and sheds, following a sentencing for a death at one of South Canterbury’s biggest agribusinesses.

Plantain 'still a winner' in nitrogen loss battle

Now is not the time to stop incorporating plantain into dairy pasture systems to reduce nitrogen (N) loss, says Agricom Australasia brand manager Mark Brown.

People expos set to return

Building on the success of last year's events, the opportunity to attend People Expos is back for 2025, offering farmers the chance to be inspired and gain more tips and insights for their toolkits to support their people on farm.

SustaiN lands NZ registration

Ballance Agri-Nutrients fertiliser SustaiN – which contains a urease inhibitor that reduces the amount of ammonia released to the air – has now been registered by the Ministry of Primary Industries (MPI). It is the first fertiliser in New Zealand to achieve this status.

Precision N application test costs 'outweigh returns'

Precision application of nitrogen can improve yields, but the costs of testing currently outweigh improved returns, according to new research from Plant and Food Research, MPI and Ravensdown.