Fonterra has announced that it will reduce its 2023/24 season forecast Farmgate Milk Price range.
The cooperative says the range will reduce from $7.25 – $8.75/kgMS to $6.25 – $7.75/kgMS, which means the midpoint will drop from $8.00/kgMS to $7.00/kgMS.
The announcement comes after the whole milk powder (WMP) price tumbled 7.29% on the Global Dairy Trade (GDT) auction platform earlier this week, taking WMP prices to their lowest level since early 2019.
Fonterra chief executive Miles Hurrell says the revised price range reflects ongoing reduced import demand for whole milk powder from Greater China.
“This reflects a current surplus of fresh milk in China, resulting in elevated levels of local production of whole milk powder, and reducing near-term whole milk powder import requirements.
“The medium to long term outlook for dairy, in particular New Zealand dairy, looks positive with milk production from key exporting regions flat compared to last year,” says Hurrell.
