Fonterra increases its farmgate milk price forecast

In some encouraging news for the dairy industry, New Zealand co-operative Fonterra has increased its 2024–25 season forecast farmgate milk price from $10 per kilogram of milk solids (kgMS) to $10.15 per kgMS. As part of this adjustment, the price range has narrowed from $9.70–10.30 per kgMS to $10.10–10.20 per kgMS.

“As we close out the FY25 year, I’m pleased to be in the position to increase the forecast for the 2024–25 season by 15 cents,” Fonterra CEO Miles Hurrell said.

“We began the season with a wide forecast range to account for potential volatility in commodity prices and exchange rates resulting from geopolitical dynamics.

“However, global dairy trade prices have remained stable, and when coupled with our well-contracted sales book, we have been able to increase our forecast farmgate milk price across the season.”

Fonterra plans to confirm the final farmgate milk price for the 2024–25 season when it releases its FY25 annual results in September.

The co-op has also retained the $10 per kgMS forecast for the current 2025–26 season and narrowed the range from $8–11 per kgMS to $9–11 per kgMS.

“Global dairy trade prices continue to be strong, supporting the $10 per kgMS forecast midpoint for the current season,” Hurrell said.

“However, it’s still early in the season and the risk of volatility remains, which is reflected in the wide forecast range.”

The co-op’s FY25 forecast earnings of 65–75 cents per share remain unchanged.

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