Thursday, 23 May 2019 10:46

Fonterra opens season with $6.25 to $7.25 price range

Written by 

Fonterra has announced an opening forecast milk price range of $6.25 to $7.25/kgMS for the new season.

The co-op says the price range will narrow as the season progresses. The 2019/20 advance rate schedule has been set off $6.75/kgMS.

Chairman John Monaghan says this is a realistic opening forecast. 

“We are having to look out more than a year into the future which is difficult, but what the information available is continuing to show us is that demand remains strong across key trading partners and this is reflected in GDT prices.

“We are giving farmers a wide range for the opening forecast milk price. It will be narrowed as the season goes on.”

Weather plays a significant role in determining global milk volumes, and therefore price. 

Fonterra is forecasting New Zealand collections to be 1,520 million kgMS for the new season, up slightly on the current season. 

However, Monaghan says there’s “still a lot of water to go under the bridge before we’ll have a clear view of what the season holds for both our co-op’s production and global dairy supply”.

Fonterra has also narrowed its 2018-19 forecast Farmgate Milk Price range by 20 cents to $6.30 - $6.40/kgMS.

This reflects favourable foreign exchange movements but slightly weaker than expected pricing for whole milk powder and skim milk powder.

The co-op has now contracted the majority of its farmers’ milk for the current season and has greater certainty on the likely closing Farmgate Milk Price. This is also reflected in the tighter forecast range, it says.

More like this

Fonterra posts solid results

Fonterra has delivered a solid half-year result, thanks to higher margins and sales volumes across the co-op's diversified product and category mix.

Featured

Sheep drench resistance costly

Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.

Dairy sheep and goat turmoil

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

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

National

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…

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…

Machinery & Products

All-terrain fert spreading mode

Effluent specialists the Samson Group have developed a new double unloading system to help optimise uphill and downhill organic fertiliser…

Can-Am showcases range

Based on industry data collected by the Motor Industry Association, Can-Am is the number one side-by-side manufacturer in New Zealand.

» Latest Print Issues Online

Milking It

Papal visit

OPINION: European farmers are going to extreme lengths to have their message heard.

Thai egg tarts

OPINION: The hustle and bustle of one of Bangkok's most popular fast food outlets may feel a world away from…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter