Fonterra increases milk price

Fonterra Co-operative Group Limited increased its 2016/17 forecast farm gate milk price by 75 cents to $6,00 per kg milk solids on Monday, 21 November. Tim Mackie, chief executive of Dairy New Zealand, said the increase is great news for farmers, particularly after the earthquake. Chairman John Wilson said the increase reflects improvements in pricing since September, following the gradual rebalancing of global supply and demand.

“We’ve seen falling production in the major exporting regions, particularly Europe and Australia, and an unprecedented decline in New Zealand milk supply due to wetter-than- normal spring conditions across most regions. On balance, demand continues to be firm. As a result, there has been a steady improvement in global dairy commodity prices and this is reflected in the improved forecast.

“We are very mindful that farm incomes will be affected this year because of lower milk production so we will be doing everything possible to build on our good start to the financial year and deliver the highest possible total payout to our farmers”, said Wilson.To read more, click HERE.

Published on Monday, 28th November 2016 - 14:27