fbpx
Print this page
Friday, 04 December 2020 08:53

Fonterra lifts forecast milk price

Written by  Sudesh Kissun
Fonterra says demand from China has led to a rise in the farmgate milk price. Fonterra says demand from China has led to a rise in the farmgate milk price.

Strong demand from China for whole milk powder has triggered another rise in Fonterra’s farmgate milk price.

The co-op has increased the midpoint of its forecast range, which farmers are paid off, by 20c to $7/kgMS. This follows a 40c lift in October.

Fonterra chief executive Miles Hurrell says as a result of strong demand for New Zealand dairy, the co-op has narrowed and lifted the bottom end of the forecast farmgate milk price range from $6.30 - $7.30/kgMS to $6.70 - $7.30/kgMS.

“This means the midpoint of the range, which farmers are paid off, has increased to $7/kgMS,” he says.

“China is continuing to recover well from COVID-19 and this is reflected in recent Global Dairy Trade (GDT) auctions with strong demand from Chinese buyers, especially for Whole Milk Powder, which is a key driver of the milk price.

“The impact of COVID-19 continues to play out globally, and we continue to have a watchful eye on the increasing Northern Hemisphere milk production and New Zealand dollar.

“However, we have contracted a good proportion of our sales book for this time of the season, which has given us the confidence to narrow and lift the bottom end of the forecast Farmgate Milk Price range.

“Our forecasts would see the co-op contribute around NZD $10.5 billion to the New Zealand economy this year.”

More like this

Clean and green to pay?

Fonterra says there is a genuine understanding among farmer shareholders about the global demand for sustainably produced dairy.

$8 on the cards?

An $8-plus milk price for Fonterra farmers this season could be on the cards.

Fonterra's Chinese New Year boost

China's New Year celebrations were almost back on track this year, helping Fonterra record double growth digit growth in its consumer brands sales.

National

Dry cow therapy minus antibiotics

Taranaki sharemilker Shaun Eichstaedt was the first New Zealander to replace traditional antibiotic dry cow therapy (DCT) with a high-strength…

Changes are afoot

There has been a mixed response by the agriculture sector to the recently released Climate Change Commission’s 2021 draft report. 

Machinery & Products

Bigfoot comes up trumps

Call them what you will, but UTVs, or side-by-sides, have certainly found a place in much of New Zealand’s rural…

Merlo goes greener

Obviously not wishing to get left behind by some of its competitors, Italian manufacturer Merlo is planning to add to…