Milk Glut Drags Fonterra Forecast Down to $9.20/kgMS
A milk glut around the world shows no sign of easing, putting downward pressure on farmgate milk prices for the next few months.
The co-op’s operating profit for six months ending January 31, 2025 topped $1.1 billion, up 16% on last year. Earnings per share rose 10% to 44c.
Fonterra chief executive Miles Hurrell says it’s pleasing to be able to deliver these results for farmer shareholders and unit holders.
“We’re focusing on driving value which includes delivering strong financial performance while achieving the highest sustainable farmgate milk price," says Hurrell.
“At the same time, we’re looking ahead as we implement our strategy and continue to invest for the future. We have commenced projects to unlock manufacturing production capacity for our Ingredients and Foodservice channels, with site works now underway at Studholme for high-value protein capacity and at Edendale for a new UHT cream plant.
“We’re also continuing to invest to future proof our operations and supply chain network, with work underway on a new Whareroa coolstore and plans for decarbonisation projects at Clandeboye, Edendale, Edgecumbe and Whareroa to secure energy supply and reduce the co-op’s emissions.
“As we focus on delivering the strongest farmer offering, we have announced new funding for farmers with lower emissions milk and expanded the fixed milk price programme that farmers can use to get more certainty around the farmgate milk price,” says Hurrell.
