Fonterra lifts 2024 milk price forecast

Fonterra produces about 30 per cent of the world's dairy exports. Photo / Mark Mitchell

Fonterra has increased its 2023-24 season forecast farmgate milk price by 30¢.

The midpoint rose to $7.80 per kilogram of milk solids (kgMS), up from $7.50/kgMS. The forecast range for the season also increased to $7.30-$8.30/kgMS, up from $7-$8/kgMS.

Fonterra chief executive Miles Hurrell said the price lift came off the back of five strong global dairy trade (GDT) auctions.

“Recently, we’ve seen a lift in demand, primarily from the Middle East and Southeast Asia, for our reference commodity products and this has been reflected in GDT prices,” Hurrell said. “Overall GDT prices are up 10 per cent since our last farmgate milk price update in December, with whole milk powder prices up 11.5 per cent over the same period.”

Hurrell said he was confident of Fonterra’s ability to weather geopolitical instability and supply chain disruption in importing regions.

“We can navigate these dynamics thanks to our scale and our diversification across markets, which provides us with optionality.”