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Fonterra announces further milk price increase
Published 28 September 16
Fonterra has announced a further 10.5% rise in its 2016/17 forecast farmgate milk price, to approximately 21-22ppl (NZ$5.25 per kilo of milk solids). This follows its recent increase in August and may be considered a positive indication of the improving market situation.
Fonterra says the move reflects the continuing decline in milk production, while demand has remained stable. The processor acknowledged that the market remains volatile and said it will continue to review its forecast milk price throughout the season.