Fonterra Lifts Milk Price Forecast Amid Global Dairy Price Surge

Highlights:

• Fonterra's Forecast Milestone: Fonterra Co-operative Group Limited (NZX: FCG) has raised its milk price forecast to a midpoint of $10/kgMS, the highest in its history.
• Global Dairy Prices Surge: Recent Global Dairy Trade auctions saw prices increase for the third consecutive session, driven by robust international demand.
• Positive Economic Impact: The revised forecast is set to boost farmer incomes and strengthen New Zealand's rural economy, reflecting Fonterra's resilience and market adaptability.

Another Record High for Fonterra's Milk Price

Fonterra Co-operative Group Limited (NZX: FCG), New Zealand's largest dairy exporter, has increased its forecast milk price to a midpoint of $10 per kilogram of milk solids (kgMS), marking its fourth upward revision this season. At the time of writing, Fonterra’s forecast range has moved to $9.50-$10.50/kgMS, surpassing its previous record of $9.30/kgMS for the 2021/2022 season.

Global Demand Drives Price Increases

The upward revision follows a significant rise in global dairy prices. Recent Global Dairy Trade auctions have seen average prices increase for the third consecutive session, signaling robust demand from international markets. Customers have shown renewed confidence in dairy products, further solidifying Fonterra's position in the global market.

Impact on Farmers and Industry Outlook
The updated forecast is expected to boost farmer incomes, providing additional support to the rural economy. Fonterra’s CEO, Miles Hurrell, emphasized that the strong global demand reflects the high regard for New Zealand dairy products. This uplift aligns with Fonterra’s commitment to creating sustainable value for its shareholders and suppliers.

Looking Ahead

Fonterra’s consistent upward adjustments highlight its adaptability to shifting market conditions and its strategic focus on leveraging global demand. As dairy prices continue to show resilience, the co-op is well-positioned to navigate the evolving economic landscape while supporting its farmers with competitive payouts.

The revised forecast underscores Fonterra’s pivotal role in the New Zealand economy, bolstering confidence in its long-term growth trajectory.

Disclaimer for Kapitales Research

The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com