Thursday, 05 December 2019 10:02

Fonterra’s new forecast milk price range - $7.00 to $7.60/kgMS

Written by  Staff Reporters
The new milk price range is now $7.00-$7.60/kgMS. The new milk price range is now $7.00-$7.60/kgMS.

Fonterra is lifting its farm gate milk price by 25c on the back of a strong global dairy market.

The co-op has lifted the mid-point of its forecast Farm gate milk price range by 25 cents to $7.30/kgMS. The new milk price range is now $7.00-$7.60/kgMS.

Fonterra chairman John Monaghan says the co-op has continued to earn good prices for its milk and as a result has increased the 

“The higher price reflects a global dairy market that is tipped slightly in favour of demand.

“Our New Zealand milk production is forecast to be up 0.5% on last year. Annual milk production in the other key global supply regions of the US and EU are both growing at less than 1%.

“On the demand side, Global Dairy Trade prices have increased by about 6% since our previous forecast. Whole milk powder (WMP) prices, a key driver of our milk price, have hit their highest level since December 2016.”

Fonterra says at this stage of the year, it has contracted a good proportion of our sales book.]

Monaghan says that gives them the confidence to increase the mid-point of our forecast farm gate milk price range by 25 cents.

“Farmers will welcome what would be the fourth highest milk price in our history. It represents a $11.2 billion cash injection into our communities.”

More like this

Fake milk bites processors

If you think only Fonterra is in financial dire straits... the US milk industry is reeling from the decline in dairy sales.

Featured

Gong for working with nature

A Leeston dairy farmer’s adoption of regenerative agriculture has won him North Canterbury Fish & Game’s Working with Nature Award for 2019.

 

Do you need an upgrade?

Dairy infrastructure can have a major impact on milking efficiency and the comfort of cows and milkers, says DairyNZ.

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Why steal Stihl?

If someone turns up on your farm, selling Stihl 461 chainsaws, please shout out. That’s the message from NZ Young…

Cow talk

Cows do talk, researchers say.

» Connect with Dairy News