Soaring whole milk powder (WMP) prices are lifting forecast milk price to Fonterra farmer suppliers but it is also affecting the co-op’s profitability.
The Sri Lankan Cabinet has approved the importation of 4,200 dairy cows to five private companies to increase the production of liquid milk in the country.
Sri Lanka's annual milk requirement is 722 million litres. However, the current milk production in the country is 422 million litres. Due to this, the country spends US$365 million on importing milk powder - and Fonterra is the major supplier.
The Sri Lankan Government says it also wants consumers to drink more liquid milk.