Fonterra’s new forecast milk price range - $7.00 to $7.60/kgMS

The co-op has lifted the mid-point of its forecast Farm gate milk price range by 25 cents to $7.30/kgMS. The new milk price range is now $7.00-$7.60/kgMS.

Fonterra chairman John Monaghan says the co-op has continued to earn good prices for its milk and as a result has increased the 

“The higher price reflects a global dairy market that is tipped slightly in favour of demand.

“Our New Zealand milk production is forecast to be up 0.5% on last year. Annual milk production in the other key global supply regions of the US and EU are both growing at less than 1%.

“On the demand side, Global Dairy Trade prices have increased by about 6% since our previous forecast. Whole milk powder (WMP) prices, a key driver of our milk price, have hit their highest level since December 2016.”

Fonterra says at this stage of the year, it has contracted a good proportion of our sales book.]

Monaghan says that gives them the confidence to increase the mid-point of our forecast farm gate milk price range by 25 cents.

“Farmers will welcome what would be the fourth highest milk price in our history. It represents a $11.2 billion cash injection into our communities.”