Fonterra Has Increased Its Forecast Farmgate Milk Price

Dairy giant Fonterra has increased its forecast Farmgate Milk Price. It sits between 7-90 and 8-90 per kilo of milk solids. Fonterra CEO Miles Hurrell says the lift is a result of continued demand for New Zealand dairy relative to supply. He says the $8.40 midpoint for 2021’22 equals the highest Farmgate Milk Price paid by the co-op and is a result of continued demand for New Zealand dairy relative to supply.. The pay-out would see almost $13 billion flow into regional New Zealand through milk price payments this season. Overall global milk supply growth is forecast to be below average driven by a slowdown in US production due to the increased cost of feed and this is supporting the current pricing levels. Miles Hurrell says it’s still early in the season and a lot can change with increased volatility when prices are high.