Fonterra shaves 50c off forecast milk price
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
Add that to a drop in milk production due to extreme weather this year and the co-op is facing a dilemma of overcapacity. Processing 20% of Australia’s total milk, the co-op suddenly finds itself with more stainless steel than it needs.
Rumours are rife that Fonterra will close one or more of its processing plants there.
Fonterra will announce its annual result on September 12. Watch this space.
