Frothy Fonterra milk prices start settling

The majority of the co-op's milk has already been contracted for the season. (Image: Getty)

Mon, 09 May 2022

Fonterra lowered the amount it expects to pay its farmer shareholders due to lockdowns in China, the economic crisis in Sri Lanka and the Russia-Ukraine conflict.The dairy giant now expects to pay its farmer shareholders between $9.10 and $9.50 per kilogram of milk solids versus its prior forecast of $9.30-$9.90/kgMS.This reduces the midpoint of the range – which farmers are paid off – to $9.30/kgMS from $9.60/kgMS.Still a recordWhile it remains a record, it will reduce the payout by about $500 million to just under $14 billion.Font...

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