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Fonterra raises farmgate milk price forecast on strong dairy demand -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – The Fonterra logo can be seen at the Fonterra Te Rapa near Hamilton, August 6, 2013. REUTERS/Nigel Marple

(Reuters). Fonterra, New Zealand on Thursday increased the range of the milk price it will pay farmers in its 2021/22 season forecast. Fonterra cited a rise in global diary rates as a result of strong demand.

Dairy giant Nestlé said that high feed costs in America and Europe had affected milk production. This trend is expected to last for the next few months.

Global demand for milk remains strong, but global supply growth is still below the average. “These demand and supply dynamics support the rise in prices,” Miles Hurrell, Chief Executive of Consumer Products said in a statement.

‍Fonterra has raised its forecasts for 2021/22 farmgate price to NZ$9.30 to NZ$9.90 per kilogramm of milk solid (kgMS), from NZ$8.90 and NZ$9.50 each kgMS. Fonterra increased its midpoint by 40 NZcs, to NZ$9.60 for each kgMS.

Due to the continued adverse weather conditions, the company has slashed the projection for New Zealand milk collections in this period from 3.8% to 1.48 Billion KgMS.

(Corrects typographical mistake in headline

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