Fonterra increases forecast milk price

Fonterra Cooperative Group Limited yesterday increased its 2016/17 forecast farmgate milk price.  The price has been increased by NZ$50 cents to NZ$4,75 per kg MS. When combined with the forecast earnings per share range for the 2017 financial year of NZ$50 to 60 cents, Fonterra forecasts the total pay-out available to dairy farmers in the current season to be NZ$5,25 to NZ$5,35 before retentions.

Chairman John Wilson said:  “Milk production is reducing in most dairying regions globally in response to low milk prices and this is bringing the world’s milk supply and demand back into balance. Milk production in the EU is now in decline and our New Zealand milk collection at this early stage is around 4 per cent lower for the year to date. Prices have increased on GlobalDairyTrade but the increasing NZD/USD exchange rate continues to offset some of these gains. We expect the dairy market to be volatile over the coming months and will continue to keep our forecast updated for our farmers as we move into the season.” To read more, click HERE.