Strong production, tested demand send milk prices crashing
Strong global milk production and rebalancing of demand among key buyers has delivered one of the biggest drops in whole milk powder prices in recent years.
The co-operative today raised the midpoint of the 2024/25 season forecast Farmgate Milk Price by 50 cents to $10/kgMS.
The new forecast range of $9.50-$10.50/kgMS reflects the ongoing strength of the global market.
“We’re committed to providing farmers the highest sustainable milk price, so I'm pleased to announce another lift in the forecast for the season,” says Fonterra chief executive Miles Hurrell.
“We’re seeing a recovery of demand in Greater China as domestic milk production rebalances and demand from Southeast Asia continues to be strong.
“Looking at supply, milk production out of the US and Europe continues to be impacted by local factors, while production out of most regions of New Zealand has increased.
“We’re continuing to monitor factors that may influence global supply and demand dynamics, including any potential impact from heightened geopolitical uncertainty,” says Hurrell.
Fonterra’s previous best milk price was $9.30/kgMS, paid in 2021-22.
