Wednesday, 26 May 2021 09:14

Settled GDT prices lead to 5c dip in payout midpoint

Written by 

Fonterra has reduced its 2020-21 forecast farmgate milk price range midpoint by 5c.

 

Having sold most of its milk for the 2020/21 season, Fonterra says it is now in a position to narrow this season’s range - from $7.30 - $7.90/ kgMS to $7.45 - $7.65/kgMS. 

 Chief executive Hurrell says, at a mid-point of $7.55/kgMS , 2020/21 would be the second year in a row with the forecast farmgate milk price above $7/kgMS. 

 Hurrell says since March, global dairy prices have settled, somewhat.

“This is why we have revised our midpoint down 5 cents.”

He referred to the “extraordinary” March Global Dairy Trade (GDT) event, where prices jumped 15% and contributed to the increase in its forecast 2020/21 farmgate milk price range.

Back in March, the average price for whole milk powder was over US$4,350/metric tonne. In the last three GDT events, however, the average price has reduced to close to US$4,100/metric tonne. And GDT butter prices have gone from almost US$6,000 per metric tonne to below US$5,000 per metric tonne for the first time since January, Hurrell notes.

More like this

Fonterra reacts to feedback

Fonterra's board is getting some kudos for listening to shareholder concerns as it works on a new capital structure.

Peak milk?

OPINION: So, Fonterra believes New Zealand has reached peak milk.

National

a2 Milk seals Mataura deal

The a2 Milk Company (a2Mc) has been given the regulatory approval to buy 75% of Mataura Valley Milk, Southland.

Machinery & Products

Giving calves the best

Waikato farmer Ed Grayling milks 430 cows on mostly peat soil that is low on trace elements.

Feed system helping grow top heifers

Feeding livestock can bring with it several challenges including labour shortages, wasted feed, higher prices for smaller quantities, intake monitoring…

Hard hat or hard head

A recently released coroner's report into the death of a South Canterbury farmworker in 2019 raised the question of the…

Made in NZ: Trimax

Made in New Zealand looks at the wealth of design and manufacturing ability we have in New Zealand, creating productive…

Vendro badged tedders

Masterton based Tulloch Farm Machines has introduced a new series of Krone tedders badged Vendro, to replace the existing KW…

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Microbe power

OPINION: Microbes fished from the stomachs of cows can gobble up certain kinds of plastic, including the polythylene terephthalate (PET)…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter