increase font size
Fonterra’s farm gate milk price faces another revision.
Fonterra’s farm gate milk price faces another revision following the Global dairy Trade (GDT) auction overnight.
The GDT price index fell 3.5%, compared to the previous auction. Whole milk powder price, the main tool used by Fonterra to determine its farm gate milk price, was down 1.8% to US$2599/metric tonne.
The WMP price has failed to rise in nine consecutive GDT auctions and is at a two-year low.
Fonterra is required to give a milk price forecast for Dairy Industry Restructuring Act (DIRA) purposes by 15 December 2018.
On August 31, the co-op revised its 2018/19 forecast farm gate milk price from $7.00/kgMS to $6.75/kgMS.
However, available market information forced the co-op to lower the forecast milk price even further on October 10. The co-op slashed its milk price from $6.75/kgMS to a range of $6.25 to $6.50.
Key results
AMF index down 9.4%, average price US$4,577/MT
Butter index down 9.6%, average price US$3,637/MT
BMP not offered
Ched index up 0.2%, average price US$3,252/MT
LAC index up 1.1%, average price US$920/MT
RenCas index down 4.5%, average price US$5,067/MT
SMP index down 1.6%, average price US$1,965/MT
SWP index not available, average price not available
WMP index down 1.8%, average price US$2,599/MT
OPINION: There is zero chance that someone who joined Fonterra as a lobbyist, then served as a general manager of Fonterra's nutrient management programme, and sat on the board of Export NZ, a division of lobbyist group Business New Zealand, doesn't understand that local butter (and milk and cheese) prices are set by the international commodity price.
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
An A$2 billion bid for Fonterra's Oceania business would be great news, according to Forsyth Barr senior analyst, equities, Matt Montgomerie.
The world's largest dairy company may be in pole position to acquire Fonterra's Australian assets.
Over 85% of Fonterra farmer suppliers will be eligible for customer funding up to $1,500 for solutions designed to drive on-farm efficiency gains and reduce emissions intensity.
Fresh produce grower and exporter T&G Global has overturned last year’s dismal performance by reporting a half year net profit of $1.7 million.
One of New Zealand’s largest fertiliser plants could be forced to shut down for four months as uncertainty looms over gas supply.
Federated Farmers North Canterbury president Bex Green says two public meetings held this week should have made it loud and clear that rural families and businesses are concerned about proposed staffing changes at NZ Police.
The Environmental Protection Authority (EPA) is consulting on a proposal to ban weedkillers containing chlorthal-dimethyl (DCPA).
August 6 marks Farm Worker Appreciation Day, a moment to recognise the dedication and hard mahi of dairy farm workers across Aotearoa - and DairyNZ is taking the opportunity to celebrate the skilled teams working on its two research farms.
OPINION: The Government has been seeking industry feedback on its proposed amendments to a range of Resource Management Act (RMA) national direction instruments.
