Sharechat Logo

Fonterra raises milk price forecast to $6.10/kg, citing global demand, rising prices

Tuesday 27th April 2010

Text too small?

Fonterra Cooperative Group, the world’s biggest dairy exporter, raised its forecast milk price for 2009/10 by 7%, citing rising global dairy prices and demand begins to outstrip supply.

The cooperative expects to pay its farmer-suppliers $6.10 a kilogram of milk solids in the year ending May 31, up from its previous estimate of $5.70, it said in a statement today.

“The global supply/demand balance for dairy products has shifted to a slight supply deficit,” said chairman Henry van der Heyden.

“Demand from Middle East/North Africa and Asian markets continues to grow.”

At the same time, global milk production has continued to slow, he said.The increase may be bittersweet news for North Island farmers, who are drying off in large numbers as drought withers grass supply. That means any price gains will be offset by dwindling production.

“Many farmers, especially those north of Taupo, are suffering from worsening drought conditions,” van der Heyden said. “We recognise that the weather has made it very difficult for many farmers going into the winter.”

Fonterra, which will make a more formal forecast at the end of May, said its farmers should assume a similar payment for 2011.

 

 

 

Businesswire.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report