Fonterra reveals strong forecast farmgate milk price for 2018/19
Fonterra Co-operative Group has announced an opening forecast farmgate milk price of NZ$7 per kilogram of milk solids (€4.12/kg) for the 2018/19 season.
John Wilson, chairman, says, “What we are seeing is a continued positive global supply and demand picture which gives us the confidence to increase our current forecast farmgate milk price into the new season.
“Demand is expected to remain strong – especially from China and for butter and AMF. We are expecting the global dairy market’s current prices, especially for fats, to continue throughout the new season.
“We are also forecasting our New Zealand 2018/19 milk collections to be 1,525 million kgMS, a 1.5% increase on our current forecast for this season, and we expect to see a lift in supply from the EU, US, Australia and Argentina.
“We will announce our forecast earnings per share for the 2019 financial year in July as normal. This, along with our forecast farmgate milk price, comprises the total available for payout to our farmers.”
Fonterra is required under the New Zealand Dairy Industry Restructuring Act to announce its forecast milk price at the beginning of each season, which starts on 1 June.