Primary Sector

Frothy Fonterra milk prices start settling

Rebecca Howard
Mon, 09 May 2022

Frothy Fonterra milk prices start settling
The majority of the co-op's milk has already been contracted for the season. (Image: Getty)
Rebecca Howard
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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