Fonterra maintains forecast farmgate milk price

Published 11 December 15

NZ processor Fonterra is maintaining its 2015/16 season forecast farmgate milk price at $4.60 per kilo of milk solids, equivalent to around 15ppl. The co-op says this reflects its view that prices should improve next year but further volatility is expected, as the imbalance between supply and demand still needs be corrected.

Low farmgate prices are impacting NZ production, with volumes predicted to be down by at least 6% for the current season ending May 2016. However, strong EU production is continuing to add to heavy global milk supplies.