fbpx
Print this page
Thursday, 23 September 2021 08:46

Fonterra's forecast milk price remains unchanged

Written by  Sudesh Kissun
Fonterra has retained its 2021-22 forecast farmgate milk price range. Fonterra has retained its 2021-22 forecast farmgate milk price range.

Fonterra has retained its 2021-22 forecast farmgate milk price range of $7.25 - $8.75/kgMS, with a midpoint of $8.

The co-op has also announced a 2021-22 earnings guidance range of 25-40c/share.

Fonterra chief executive Miles Hurrell says the strong milk price is likely to continue.

“A high milk price is good for farmers and good for the New Zealand economy.

“However, this does have the potential to squeeze our sales margins and impact earnings.”

Hurrell says the impact of COVID-19 continues to be felt, particularly across the supply chain.

“We expect competitive tension in the global shipping market to continue this financial year. We have largely been able to mitigate this thanks to the strength of our Kotahi partnership which has allowed us to keep our product moving through the supply chain.”

The co-op’s final payout for last season is $7.74/kgMS; comprising farmgate milk price of $7.54/kgMS and a dividend of 20c/share.

More like this

Why Fonterra needs to change

OPINION: Making a change to any businesses is difficult. Augmenting a capital structure with the diversity of stakeholders and complexity as at Fonterra is a significant challenge.

Anti co-operative?

OPINION: Agriculture Minister Damien O’Connor has thrown a spanner in the works as far as Fonterra’s proposed capital structure is concerned.

National

Dairy tops organic exports

Dairy has been named as New Zealand’s largest organic sector with exports of $153.8 million, up 55% from 2017.

Machinery & Products

Gongs for John Deere

The tractor of the Year 2022 Awards, held at the recent EIMA show in Bologna, handed out a brace of…

Digital pre-start safety checks

According to numbers published by ACC, more than 60 farm-related injuries are reported every day, leaving much room for improvement.

JV for Bucket Test App

Irrigation NZ and global farm management company CropX have established a joint venture agreement for the Bucket Test app.