Fonterra's Milk Price Outlook on the Rise as Global Dairy Auction Soars
Fourth time in a row Dairy trade auction resulted in a big gain.
Fonterra's farmgate milk price is facing upward pressure following another substantial gain at the latest Global Dairy Trade auction. Key dairy products saw significant price increases, including whole milk powder, which rose by 4.2% to US$3059/tonne, skim milk powder, up 4.3% to US$2659/tonne, and anhydrous milk fat, surging by 7.1% to US$5310/tonne.
Despite China, a significant buyer of New Zealand dairy products, not making substantial purchases, overall prices were up by 4.3%. Fonterra recently raised its 2023-24 forecast milk price range to $6.50-$8 per kilogram of milk solids, with a new midpoint of $7.25 per kgMS.
Despite China, a significant buyer of New Zealand dairy products, not making substantial purchases, overall prices were up by 4.3%. Fonterra recently raised its 2023-24 forecast milk price range to $6.50-$8 per kilogram of milk solids, with a new midpoint of $7.25 per kgMS.
