Dearer milk and milk products on the horizon

The ongoing rebalancing of supply and demand in global dairy markets has led the Fonterra Co-operative Group to increase its forecast Farmgate Milk Price for the upcoming 2018 season. The new forecast is $6.75 per kilogram of milk solids (kgMS), replacing the May 2017 forecast of $6.50/kgMS.

Fonterra’s chairman, John Wilson, said “We are seeing growing confidence on-farm across the country and, with global demand for dairy strengthening, the signs are for a good start to the season for our farmers and their rural communities, although following a challenging period of very wet conditions for some of our farmers.”

Chief Executive Theo Spierings meanwhile said the Co-operative is well positioned to take advantage of improving demand for dairy nutrition across Fonterra’s ingredients, consumer and foodservice markets.