fbpx
Print this page
Friday, 26 August 2022 08:54

Fonterra revises forecast milk price

Written by  Sudesh Kissun
Fonterra has revised it's milk price to $8.50-$10/kgMS. Fonterra has revised it's milk price to $8.50-$10/kgMS.

A downward trend in global dairy prices has triggered a revision of Fonterra’s forecast farmgate milk price for this season.

The co-operative has revised its milk price range – from $8.75-$10.25/kgMS to $8.50-$10/kgMS.

The midpoint reduces from $9.50 to $9.25 but current advance payment rate of $5.70/kgMS is unchanged.

Fonterra chief executive Miles Hurrell says revision will be disappointing for farmers but it reflects a number of factors - including the recent downward trend in global dairy prices driven by some short-term softening in global demand, and the general impact of inflation on purchasing behaviour.

“However, we believe the longer-term outlook for dairy remains positive,” says Hurrell.

Dairy prices on Global Dairy Trade has been dropped almost every auction since March. Over the past 11 auctions, only one (June 7) recorded a rise in the GDT price index.

Whole milk powder prices, used as a benchmark to set the milk price, has also been on the decline- dropping from US$4757/metric tonne on March 1 to US$3417/MT in the last auction two weeks ago.

More like this

Fonterra's Whareroa Wins Directors Award

Fonterra's Whareroa Wins Directors Award

Fonterra's Whareroa site took home the prestigious Directors Award at the co-op's 'Oscars of Manufacturing', while Clandeboye led the way with multiple wins at this year's Best Site Cup.

Smith V Fonterra

OPINION: To a chorus of crying greenies, and not a minute too soon, the Government has moved to put the courts back in their place through proposed amendments to the Climate Change Response Act 2002, intending to limit climate litigation claims such as Smith v Fonterra, in the interests of providing greater certainty for vital industry.

Popular Reads

Featured

Pāmu Opens Farm Gates for Summer Open Farm Days

Pāmu Opens Farm Gates for Summer Open Farm Days

State farmer Pāmu is opening its farm gates this summer in an effort to give the rural sector the opportunity to see how large-scale, multi-system farming is delivering productivity and profitability across New Zealand.

DairyNZ: Waikato Farmers Need Certainty on PC1 Rules

DairyNZ says Waikato farmers need certainty on Plan Change 1, but they say that certainty must be matched with practical, workable rules and a clear transition that doesn't get ahead of the new resource management system currently under review.

National

Machinery & Products