Fonterra raises milk price due to favorable dairy market

Fonterra has increased the milk price for the new season that started in July. This is a response to the improving dairy market, which is also visible at the Global Dairy Trade.

The milk price forecast for the current season 2024/25 has been raised by $0.50 to $8.50 per kilogram of fat and protein. The increase is attributed to the strong dairy market. The Global Dairy Trade rose again this week, and the market's peak is not yet in sight. However, caution is advised as the season has just begun.

Good year
The forecast price for the season 2023/24, which ended in June, remains at $7.80 per kilogram of fat and protein. CEO Miles Hurrel mentioned that the dividend expected by the member dairy farmers will likely be at the upper end of the range between 0.60 and 0.70 per kilogram of fat and protein.

The final milk price will be announced in September, along with the annual figures for the fiscal year 2024. Hurrel hints that the figures will be positive, given the strong performance as he described.

Wouter Baan

Wouter Baan is the editor-in-chief of Farmerbusiness and a market specialist in dairy, pork, and meat at DCA Market Intelligence. He also tracks developments within the agribusiness sector and conducts interviews with CEOs and policymakers.

w.baan@farmerbusiness.com