Better performance Fonterra increases milk price

The dairy giant indicates this in a message about the third quarter of production year 2023/2024. For the current year, Fonterra maintains a milk price of NZ $7,80 per kilo of fat and protein, which corresponds to a milk price of roughly €33,60 per 100 kilos. In addition, members can expect a dividend of 63 cents per share, which is 3 cents more than the penultimate forecast.

For the new production season 2024/2025 starting from July, Fonterra estimates a milk price of NZ $8.00 per kilo of fat and protein (€34,43 per 100 kilos). This is the so-called midpoint milk price. The milk price can fluctuate between roughly NZ$7,25 and NZ8.75, Fonterra indicates.

Food service and consumers
In the third quarter, the food service and consumer products segments in particular performed well, although food service performed less well than last year. Sales to China have not yet recovered and/or are growing, the company reports. The better results in consumer products are striking, because this is one of the parts that Fonterra would like to sell within a year to a year and a half.

Fonterra's gross result for the third quarter, excluding euros, amounted to €815 million, the net profit to €551 million. This is lower than a year earlier, but the results were boosted by the sale of Soprole and other business units. 

Mixed reactions to sales plans
CEO Miles Hurrell indicated at a meeting earlier this week that he has received a lot of responses to his sales plans, both from members and investors. There is said to be a lot of interest in the company's consumer business. Members view the plans in a slightly more nuanced way, it seems.
Dairy farmers in Australia are not at all happy with the sales plans. They have been faced with increasingly lower milk prices in recent years and fear an even lower milk price if Fonterra leaves their country.