fbpx
Print this page
Thursday, 05 December 2019 10:02

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

Written by  Staff Reporters
The new milk price range is now $7.00-$7.60/kgMS. The new milk price range is now $7.00-$7.60/kgMS.

Fonterra is lifting its farm gate milk price by 25c on the back of a strong global dairy market.

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.”

More like this

Fonterra posts solid results

Fonterra has delivered a solid half-year result, thanks to higher margins and sales volumes across the co-op's diversified product and category mix.

Featured

Sheep drench resistance costly

Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

National

Govt urged to reduce ETS units

The Climate Change Commission wants the new Government to reduce NZ Emissions Trading Scheme (ETS) auction volumes as son as…

Dairy sheep, goat woes mount

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand…

Machinery & Products

All-terrain fert spreading mode

Effluent specialists the Samson Group have developed a new double unloading system to help optimise uphill and downhill organic fertiliser…

Can-Am showcases range

Based on industry data collected by the Motor Industry Association, Can-Am is the number one side-by-side manufacturer in New Zealand.