Good news for Fonterra farmers: the co-operative has announced an opening forecast farmgate milk price range for the 2021-22 season of $7.25 - $8.75/kgMS, with a midpoint of $8/kgMS.
Share on twitter
Share on facebook
Share on linkedin
Share on whatsapp
Share on email

The record opening forecast milk price comes on the back of improving global economic environment and strong demand for dairy, relative to supply.

Fonterra chief executive Miles Hurrell says at $8/kgMS payout the co-op would contribute more than $12 billion to the New Zealand economy next season.

Global demand for dairy, especially New Zealand dairy, is continuing to grow.

China is leading the charge as its economy continues to recover strongly, says Hurrell.

“Prompted by COVID-19, people are seeking the health benefits of milk and customers are wanting to secure their supply of New Zealand dairy products and ingredients.

“Growth in global milk supply seems muted and the global supply of whole milk powder is looking constrained.

“Based on these supply and demand dynamics, along with where the NZ dollar is sitting relative to the US dollar, we’re expecting whole milk prices to remain at current levels for the near future.

“As we look out over the next 18 months, there are a number of risks, which is why at this early stage we have this large range on our forecast farmgate milk price.

“Some of the major risks include: COVID 19, which is far from over; the impacts of governments winding back their economic stimulus packages; foreign exchange volatility; changes in the supply and demand patterns that can enter dairy markets when prices are high; and as always, potential impacts of any geopolitical issues around the world.”

Arla Foods is examining how dairy farming can help improve soil biology, carbon capture, water quality and biodiversity via regenerative farming methods.

You may be interested in

Deja una respuesta

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *

To comment or reply you must 

or

Related
notes

Cerrar
*
*
Cerrar
Registre una cuenta
Detalhes Da Conta
*
*
*
*
*
Fuerza de contraseña

SUBSCRIBE TO OUR NEWSLETTER