Fonterra Raises Farmgate Milk Price Forecast Amid Strong Global Demand, Revises 2024/25 Price Range
Source: DairyNews.today
Fonterra Co-operative Group Ltd announced an upward revision to its forecast Farmgate Milk Price for the 2024/25 season, increasing the midpoint from $9.00 to $9.50 per kgMS. The Co-operative also narrowed its price range from $8.25 - $9.75 to $9.00 - $10.00 per kgMS, signaling confidence in contracted sales volumes since the last update in September.
CEO Miles Hurrell attributes the improved forecast to robust demand for key dairy commodities, which has driven price gains in recent Global Dairy Trade auctions. “This demand is particularly strong in China, where domestic production appears to be lagging behind expectations, as well as in markets across Africa, the Middle East, and Southeast Asia,” noted Hurrell.
Hurrell added that Fonterra remains vigilant, monitoring potential shifts in supply and demand dynamics that could affect pricing. “Factors such as milk production volumes in New Zealand during the latter part of the season could influence global pricing,” he said.
