Friday, 04 August 2023 09:12

Fonterra revises forecast farmgate milk price

Written by  Staff Reporters
Dairy co-operative Fonterra has reduced it's forecast farmgate milk price. Dairy co-operative Fonterra has reduced it's forecast farmgate milk price.

Fonterra has announced that it will reduce its 2023/24 season forecast Farmgate Milk Price range.

The cooperative says the range will reduce from $7.25 - $8.75/kgMS to $6.25 - $7.75/kgMS, which means the midpoint will drop from $8.00/kgMS to $7.00/kgMS.

The announcement comes after the whole milk powder (WMP) price tumbled 7.29% on the Global Dairy Trade (GDT) auction platform earlier this week, taking WMP prices to their lowest level since early 2019.

Fonterra chief executive Miles Hurrell says the revised price range reflects ongoing reduced import demand for whole milk powder from Greater China.

“When we announced our opening 2023/24 season forecast Farmgate Milk Price in May, we noted it reflected an expectation that China’s import demand for whole milk powder would lift over the medium-term,” says Hurrell.

He says that, since then, overall GDT whole milk powder WMP prices have fallen 12%, with China’s share of WMP volumes on GDT events tracking below-average levels.

“This reflects a current surplus of fresh milk in China, resulting in elevated levels of local production of whole milk powder, and reducing near-term whole milk powder import requirements.

“The medium to long term outlook for dairy, in particular New Zealand dairy, looks positive with milk production from key exporting regions flat compared to last year,” says Hurrell.

More like this

Featured

National

Machinery & Products

Gong for NH dealers

New Holland dealers from around Australia and New Zealand came together last month for the Dealer of the Year Awards,…

A true Kiwi ingenuity

The King Cobra raingun continues to have a huge following in the New Zealand market and is also exported to…

Data crucial to managing water

Watermetrics was formed as a water data collector and currently supplies and services modern technology such as flow meters, soil…

» Latest Print Issues Online

Milking It

Dairy power

OPINION: The good times felt across the dairy sector weren't lost at last week's Beef + Lamb NZ annual meeting.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter