Fonterra’s milk price down to around 13ppl

Published 9 March 16

NZ dairy co-operative Fonterra has reduced its forecast farmgate milk price further, taking it to an equivalent of around 13ppl (NZ$3.90 per kilo of milk solids). Fonterra said the 6% decrease was due to difficult conditions on the global dairy markets putting further pressure on its price forecast.

The processor expects its NZ production volume will finish the 2015/16 season at least 4% down on last year, as a result of low milk prices. Total NZ milk production for the season to January is nearly 3% down on the same period last year, with four months to go until the season ends in May.