Fonterra said it had raised its 2023/24 forecast farmgate milk price range to $6.50 - $8.00 per kgMS, with a new midpoint of $7.25 per kgMS, up 50 cents, reflecting better supply and demand dynamics.
In New Zealand, Fonterra is forecasting collections to be slightly below last season’s, while aggregate milk growth in key export countries is expected to be below average for 2024, chief executive Miles Hurrell said.
“The El Niño weather pattern may have further impacts on supply, and this could be driving recent buyer sentiment,” Hurrell said.
In addition, recent Global Dairy Trade auctions had shown better demand.
“While this has been encouraging, it is not yet clear whether the stronger demand from China will be sustained. For other key regions, customers remain relatively cautious in terms of their forward purchases,” Hurrell said.