Fonterra has raised its forecast Farmgate Milk Price for the 2024/25 season, increasing it from $10.00 to $10.15 per kgMS. The price range has also been tightened from $9.70 - $10.30 to $10.10 - $10.20 per kgMS.
CEO Miles Hurrell said, “as we close out the FY25 year, I’m pleased to be in the position to increase the forecast for the 2024/25 season by 15 cents.”
He explained the co-op had taken a cautious approach at the beginning of the season by setting a wide price range. This was due to potential uncertainty in commodity prices and currency markets influenced by global events.
“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,” said Mr Hurrell.
The final price for the 2024/25 season will be confirmed alongside Fonterra’s FY25 annual results in September.
Looking ahead, the co-op has maintained its Farmgate Milk Price forecast for the 2025/26 season at $10.00 per kgMS. However, it has narrowed the forecast range from $8.00 - $11.00 to $9.00 - $11.00 per kgMS.
“Global Dairy Trade prices continue to be strong, supporting the $10.00 per kgMS forecast midpoint for the current season,” said Mr Hurrell. “However, it’s still early in the season and the risk of volatility remains, which is reflected in the wide forecast range.”
Fonterra has kept its earnings forecast for FY25 unchanged, expecting between 65 and 75 cents per share.