Fonterra has slashed its forecast milk price for the 2023/24 season by $1 as demand slumps. The co-op announced a revised farmgate milk price range of $6.25 to $7.25 per kilogram of milk solids, with a mid-point of $7 per kgMS…the forecast was previously at a mid-point of $8 per kgMS. Fonterra chief executive Miles Hurrell says the reduced Chinese demand for whole milk powder is the main reason with overall Global Dairy Trade whole milk powder prices falling by 12%, and China’s share of whole milk powder volumes below average levels. Whole milk powder prices on the GDT auction platform have slid 4.5% this year and are 17% below the same time last year, with analysts tipping further falls. China currently has a surplus of fresh milk, meaning more whole milk powder is being produced locally with less need for imported powder.