Fonterra cuts forecast farmgate price as demand lags behind increased production

Tue, 09 Oct 2018

By Paul McBeth Oct. 10 (BusinessDesk) - Fonterra Cooperative Group has cut its forecast payout to farmers for a second time as global demand growth lags behind an increased supply, including a bigger domestic milk collection. The firm now predicts it will pay $6.25-to-$6.50 per kilogram of milk solids for the 2019 season, down from a previous forecast of $6.75/kgMS and the $7/kgMS opening prediction in May. The advance rate is based on the bottom end of the range. At the same time, the milk processor expects domestic milk collection...

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