Fonterra Co-operative Group Ltd today raised the midpoint of the 2024/25 season forecast Farmgate Milk Price by 50 cents to $10.00 per kgMS.
The new forecast range of $9.50-$10.50 per kgMS reflects the ongoing strength of the global market.
“We’re committed to providing farmers the highest sustainable milk price, so I’m pleased to announce another lift in the forecast for the season,” says Fonterra CEO Miles Hurrell.
“We’re seeing a recovery of demand in Greater China as domestic milk production rebalances and demand from Southeast Asia continues to be strong.
“Looking at supply, milk production out of the US and Europe continues to be impacted by local factors, while production out of most regions of New Zealand has increased.
“We’re continuing to monitor factors that may influence global supply and demand dynamics, including any potential impact from heightened geopolitical uncertainty,” says Mr Hurrell.
Earnings guidance unchanged
Fonterra’s forecast earnings for FY25 remain unchanged at 40-60 cents per share.
“Our forecast earnings range reflects an expectation our underlying operating profit will be stable as we offset the higher cost of milk in the second half of the financial year through improved sales volumes, product mix and pricing.
“It also reflects the change in Fonterra’s tax status, which is effective from this financial year and will reduce our reported earnings per share,” says Mr Hurrell.
