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

Fonterra’s big break

Former Fonterra chairman Sir Henry van der Heyden believes the co-operative will come out a stronger global player post-COVID-19.

Featured

ANZCO makes a $30m profit

Meat company ANZCO Foods recorded its best-ever revenue of $1.7b and a net profit before tax of $30.6m for the year ended 31 December 2019.

 

M. bovis – we’re making headway

Ministry for Primary Industries chief science adviser, Dr John Roche on the indications New Zealand is winning the fight against Mycoplasma bovis.

Delays ruled out on water reforms

Delaying the introduction of new water reforms was not an option according to the two cabinet Ministers directly involved – Environment Minister David Parker and Agriculture Minister Damien O’Connor.

$700m for freshwater clean up

The Government has announced a $700 million fund to support the primary sector and other groups in meeting new clean water standards.

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Effluent power

Finnish dairy company Valio is on a mission to reduce milk’s carbon footprint to zero by 2035.

What’s in a name?

The man who coined the term ‘Gypsy Day’ is slightly miffed that a term he introduced to New Zealand’s farming…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter