Fonterra lifts forecast Farmgate Milk Price range

Fonterra Co-operative Group today announced an increase in their 2021/22 forecast Farmgate Milk Price range to NZD $8.90 - $9.50 per kgMS, up from NZD $8.40 - $9.00 per kgMS.

The midpoint of the range, which farmers are paid off, has been lifted by 50 cents to NZD $9.20 per kgMS, which is expected to contribute $13.8 billion to the New Zealand economy this season.

CEO Miles Hurrell says the higher forecast Farmgate Milk Price puts pressure on their margins in consumer and foodservice businesses, however prices in their ingredients business remain favourable.