Fonterra provides milk price update

Fonterra today revised its 2022/23 forecast Farmgate Milk Price range from NZ$8.75-$10.25 per kgMS to NZ$8.50-$10.00 per kgMS. 

This reduces the midpoint of the range from NZ$9.50 to NZ$9.25 per kgMS, however the current advance payment rate of NZ$5.70 per kgMS is unchanged.

Fonterra Chief Executive Miles Hurrell says “the change in the 2022/23 forecast Farmgate Milk Price will be disappointing for our farmers but it reflects a number of factors, including the recent downward trend in global dairy prices driven by some short-term softening in global demand, and the general impact of inflation on purchasing behaviour. However, we believe the longer-term outlook for dairy remains positive,” says Mr Hurrell.

Fonterra will release its financial results for the year ending 31 July 2022 on Thursday, 22 September 2022.