“However, Global Dairy Trade prices have remained stable, and when coupled with our well-contracted sales book, we have been able to increase our forecast Farmgate Milk Price across the season,” Hurrell said.
The co-op’s 2025 forecast earnings of 65-75 cents per share remained unchanged.
“Global Dairy Trade prices continue to be strong, supporting the $10.00 per kgMS forecast midpoint for the current season,” Hurrell said.
“However, it’s still early in the season and the risk of volatility remains, which is reflected in the wide forecast range.”
The milk price upgrades are good news for farmers, who are enjoying high prices and very strong milk production.
Data for July from NZX Dairy Insights this week showed season-to-date milk production was up 6.7% (up 8.9% on a milksolids basis).
Milk production for the 12 months through to July was up 2.4% (up 3.1% on a milksolids basis).
Production typically ramps up strongly in August before peaking in October.
At this week’s Global Dairy Trade Auction, prices were mostly steady, with the all-important whole milk powder price gaining 0.3% to US$4036 a tonne.
Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.
