Fonterra has reaffirmed its farmgate milk price and earnings forecasts for the year, despite uncertainty surrounding the outbreak of the coronavirus Covid-19 in China.
The co-op said its farmgate milk price forecast range would remain at $7.00-7.60 per kg and its full-year underlying earnings guidance would stay at 15-25 cents per share.
However, Fonterra has revised its forecast milk collections for the 2020 season down from 1,530 million kgMS to 1,515 million kgMS, due to adverse weather.
"The momentum we saw in the first three months of the financial year has continued, and as we approach the interim results our underlying earnings are tracking well," chief executive Miles Hurrell said.
"However, given the potential significant risks that could arise from coronavirus in the second half, we are taking a prudent approach and maintaining our full-year forecast earnings range," he said.