Dairy demand holds but supply surge may sink Fonterra's $10/kgMS forecast

Dairy demand holds but supply surge may sink Fonterra's $10/kgMS forecast
New Zealand has moved past its peak milk production month. (Image: Fonterra)
Riley Kennedy
Expectations are growing that Fonterra Co-operative Group will have to cut its farmgate milk price below $10 per kilogram of milk solids as increased supply weighs on global dairy prices.Wednesday’s Global Dairy Trade (GDT) auction was the sixth consecutive event where prices slipped, with whole milk powder – the biggest influence on the payout – now 20% off its 12-month peak back in May.Demand on the platform remains relatively firm, but increased milk supply in key dairy-producing nations, such as NZ, Europe and the United S...

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