Inside Milk
Fonterra raises milk price forecast again
Fonterra has today (Wednesday 3 February) raised the forecast for the basic milk price for the current milk season for the fourth time. Thanks to the favorable dairy market due to, among other things, good exports to China, the so-called Farmgate Milk Price rose by 2,9%.
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This has been announced by the New Zealand dairy giant. The milk price for the 2020/21 season now amounts to $6,90 to $7,50 (NZ dollar) per kilo of milk solids. The previous forecast from last December was based on a milk price of $6,70 to $7,30 per kilo of milk solids. The average milk price paid to farmers is therefore $7,20 per kilo of milk solids. This is converted, depending on the fat and protein values and according to the current exchange rate, about €36,39 per 100 kilos.
Miles Hurrell, CEO of Fonterra, said in a statement that the increase is the result of strong demand for dairy. make this the past auction days of the Global Dairy Trade (GDT) also clear. “We have seen particularly strong demand from China and Southeast Asia for whole milk powder (WMP) and skimmed milk powder (SMP),” said Hurrell. For Fonterra, these 2 products are the most important component in the milk price.
Keeping a close eye on
The peak in the 2021 milk season has been reached in New Zealand. Fonterra continues to closely monitor developments in the dairy market, Hurrell emphasizes. He refers, among other things, to the weather conditions in New Zealand, which are important for the grass season, possible new waves of the corona virus and the growing milk production in the Northern Hemisphere.
Hurrell could not fail to report that with this expected milk price, Fonterra is distributing almost €6,6 billion among the member dairy farmers in New Zealand. "That supports the well-being of rural communities".