Tuesday, 22 October 2019 09:04

Fonterra lifts milk price

Written by  Staff Reporters
Fonterra's new forecast range is $6.55 - $7.55/kgMS Fonterra's new forecast range is $6.55 - $7.55/kgMS

Good news for Fonterra farmers – the co-op is increasing its 2019-20 forecast farmgate milk price by 30c/kgMS.

The co-op’s new forecast range is $6.55 - $7.55/kgMS. The Advance Rate Fonterra pays its farmer owners will be set off the mid-point, $7.05/kgMS of the revised range. 

Fonterra chairman John Monaghan says the co-op had been achieving good prices for its milk so far this season. 

“Demand for whole milk powder (WMP) has been firm, and for the full season we’re expecting it to be above last year. Global WMP production is down year to date and expected to continue to decrease for the remainder of 2019. 

“We are also continuing to sell our skim milk powder at higher prices than EU and US dairy companies in Global Dairy Trade (GDT) Events.” 

Fonterra chief executive Miles Hurrell says there are positive signals for milk price.  

“It is still very early in the season and a lot can change. There are a number of factors we are keeping a close eye on, which is why we’ve retained a wide forecast milk price range. 

“These factors include global trade tensions and political instability in some of our key sales regions. And, as is always the case, we cannot predict the weather and clearly weather conditions play a big role in global supply.”  

Hurrell says the strong demand for the co-op’s milk and the prices that are being achieved, relative to other milk producing regions, demonstrated the rationale of Fonterra’s new strategy to prioritise New Zealand milk.  

“One of our four priorities is to support regional New Zealand. If you take the $7.05 mid-point of today’s revision to our forecast Farmgate Milk Price, it’s another $450 million into regional New Zealand.” 

“Our earnings outlook for FY20 is based on a forecast Farmgate Milk Price, which still falls within our new forecast range of $6.55 - $7.55/kgMS. The mid-point of the revised range does mean our teams will need to continue to push hard to achieve our margins, but so far we’re comfortable with how this season is shaping up in terms of underlying business performance.”  

More like this

Driving change within Fonterra fleet

Today is International Women’s Day, and this year Fonterra wants to shine a light on the women who defy stereotypes and prosper in traditionally male-dominated fields. Erin Wootten, a tanker operator out of the Fonterra Reparoa Site, is doing just that.

Co-op decarbonisation leader's Antarctic trip

At the beginning of November 2023, Linda Mulvihill, Fonterra’s general manager energy & climate, flew to Ushuaia, Argentina, where she boarded a ship and began a 19-day voyage to Antarctica.

Featured

Govt urged to reduce ETS units

The Climate Change Commission wants the new Government to reduce NZ Emissions Trading Scheme (ETS) auction volumes as son as possible.

Dairy sheep, goat woes mount

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Alliance's Pure South cuts win gold

Meat co-operative Alliance Group has bagged four gold medals at the Outstanding NZ Food Producer Awards, achieving top honours for every cut entered.

Dairy demand on the rise

There is increasing evidence that dairy demand is on the upswing, according to Rabobank senior agricultural analyst Emma Higgins.

National

Waikato dryer sold

An independent milk spray dryer in Hamilton, destined for liquidation, has been bought by a South Auckland goat milk processor.

Machinery & Products

Samasz sets its sights high

Since its arrival in New Zealand, Polish mower manufacturer Samasz, currently celebrating 40 years in business, has carved a niche…

Trojan keeps on going

The DR200 Trojan farm two-wheeler motorcycle was introduced over 28 years ago, when the engineering team at Suzuki New Zealand…

Still going strong!

The saying goes ‘if it ain’t broke -don’t fix it’, so it’s no surprise to see an old favourite in…

» Latest Print Issues Online

Milking It

'A complete dog

OPINION: It's not just a rural banking inquiry that farmers want. Freshwater farm plans are another major headache for farmers.

Action, not words

OPINION: The new Government may be farmer friendly, but it's not love, rather action that farmers want.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter