Fonterra shaves 50c off forecast milk price
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
It’s also the time when Fonterra farmer shareholders and those who supply independent processors watch the small Waikato processor Tatua show them a clean pair of heels in the payout race.
Just to refresh your memory, Tatua paid its 101 shareholder farms a whopping $12.30/kgMS for milk supplied last season, leaving Fonterra and other processors in the dust. The small co-op’s earnings for the 2022-23 season equated to $15.20/kgMS before retention. They retained $2.90/kgMS or $43 million for reinvestment in the business.
Fonterra, Synlait and Tatua are expected to announce their results towards the end of this month.
