Fonterra Co-operative Group Ltd raised its forecast for the 2024/25 season Farmgate Milk Price from $10.00 per kgMS to $10.15 per kgMS, while also narrowing the expected price range 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 chief executive 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,” Hurrell added.
Fonterra will announce the final Farmgate Milk Price for the 2024/25 season when it releases its FY25 annual results in September.
Fonterra has also kept the $10.00 per kgMS forecast for the ongoing 2025/26 season and has reduced the forecast range from $8.00 – $11.00 per kgMS to $9.00 – $11.00 per kgMS.
Hurrell said prices on the Global Dairy Trade remain strong, underpinning the $10.00 per kgMS forecast midpoint for the current season.
“However, it’s still early in the season, and the risk of volatility remains, which is reflected in the wide forecast range.”