Wednesday, 26 May 2021 08:42

Record opening forecast farmgate milk price from Fonterra!

Written by 

Good news for Fonterra farmers: the co-operative has announced an opening forecast farmgate milk price range for the 2021-22 season of $7.25 - $8.75/kgMS, with a midpoint of $8/kgMS.


The record opening forecast milk price comes on the back of improving global economic environment and strong demand for dairy, relative to supply.


Fonterra chief executive Miles Hurrell says at $8/kgMS payout the co-op would contribute more than $12 billion to the New Zealand economy next season.


Global demand for dairy, especially New Zealand dairy, is continuing to grow.


China is leading the charge as its economy continues to recover strongly, says Hurrell.


“Prompted by COVID-19, people are seeking the health benefits of milk and customers are wanting to secure their supply of New Zealand dairy products and ingredients.


“Growth in global milk supply seems muted and the global supply of whole milk powder is looking constrained.


“Based on these supply and demand dynamics, along with where the NZ dollar is sitting relative to the US dollar, we’re expecting whole milk prices to remain at current levels for the near future.


“As we look out over the next 18 months, there are a number of risks, which is why at this early stage we have this large range on our forecast farmgate milk price.


“Some of the major risks include: COVID 19, which is far from over; the impacts of governments winding back their economic stimulus packages; foreign exchange volatility; changes in the supply and demand patterns that can enter dairy markets when prices are high; and as always, potential impacts of any geopolitical issues around the world.”

More like this

Fonterra revamps management team

Fonterra has completed a revamp of its executive management team with the appointment of Emma Parsons in the new role of managing director strategy and optimisation.

All for show?

OPINION: The Hound notes that Fonterra is cashing in on the curent government's largesse with taxpayer money.

National

What now?

Aged 64, Malcolm Bailey says farewell after a stellar career in the dairy industry but his knowledge, innovation and drive…

DCANZ chief bows out

Malcolm Bailey says one of the difficult things he's had to overcome in his tenure with DCANZ is getting traction…

Machinery & Products

Amazone's one-pass operation

Ag machinery maker Amazone has paired up its Precea precision air seeder and Combi-Disc 3000 compact disc harrow to deliver…

New grassland products

Grassland specialist Pöttinger has released a new portfolio of products and innovations for the new mowing season.

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Three Waters in trouble?

OPINION: Yet another sign has emerged that the Government's controversial Three Waters reform could be in trouble.

Doco maker wrong

OPINION: A documentary maker who wrongly claims in his film that cows in New Zealand live only one quarter of…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter