Fonterra cuts forecast milk payout to $6.40/kgMS on falling dairy prices

Wed, 06 Dec 2017

By Jonathan Underhill Dec. 7 (BusinessDesk) - Fonterra Cooperative Group cut its forecast farmgate milk price citing weaker global dairy prices and increased production and skim milk stockpiles in Europe. The dairy company cut the payout forecast to $6.40 per kilogram of milk solids, within the range expected by economists, from the $6.75/kgMS forecast in September. The GlobalDairyTrade price index rose 0.4 percent in this week's auction, snapping four consecutive declines, although the gain came on lower volumes sold. Fonterra paid it...

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