Fonterra revises 2018/19 forecast Farmgate Milk Price
31 August 2018
FONTERRA REVISES 2018/19 FORECAST FARMGATE MILK PRICE
Fonterra Co-operative Group Limited today revised its 2018/19 forecast Farmgate Milk Price from
$7.00 per kgMS to $6.75 per kgMS.
Fonterra Chairman, John Monaghan, said the change was in response to stronger milk supply
signals coming from some of the world’s key dairy producing regions.
“Over the past quarter, we have seen increased milk supply out of markets including Europe, the
US and Argentina. These regions have a big influence on the supply and demand balance and
therefore global prices. For example, the one per cent increase in US milk production represents
just under 100 million litres of extra milk.
“At the same time, demand for whole milk powder and dairy fats is showing signs of slowing in
some parts of Asia, Africa and the Middle East,” added Monaghan.
Fonterra CEO, Miles Hurrell, said the weakening NZD/USD exchange rate had only partially offset
the decline in global dairy prices, and it was important to give farmers a realistic assessment of the
market.
“It’s still very early in the season and a lot can change over the coming months. A drop in the new
season Milk Price forecast will be frustrating to our farmers, but it’s important we give them the facts
so they can make informed decisions in their farming businesses,” said Hurrell.
The timing of today’s update is in line with DIRA requirements for Fonterra to review the Milk Price
every three months. The Co-operative last considered the Milk Price in May.
ENDS
For further information contact:
Campbell Hodgetts
Fonterra Communications
Phone: +64 27 563 4985
Fonterra Communications
24-hour media line
Phone: +64 21 507 072
About Fonterra
We’re a global dairy nutrition company owned by 10,000 farmers and their families. We’ve built our expertise
on the legacy of the thousands of farmers who’ve made New Zealand a world leader in dairy. With a can-do
attitude and a collaborative spirit, we’re a world leading dairy exporter. Our 22,000 people share the
goodness of dairy nutrition with the world through our innovative consumer, foodservice and ingredient
solutions brands, and our farming and processing operations across four continents.
Fonterra Co-operative Group
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