Fonterra lifts forecast Milk Price and maintains earnings

Email: [email protected] Fonterra Co-operative Limited today lifted its 2021/22 forecast Farmgate Milk Price range by 40 cents to NZ$9.30 - $9.90 per kgMS, up from NZ$8.90 - $9.50 per kgMS.

Fonterra CEO Miles Hurrell says the lift in the forecast reflects the increase in global dairy prices since the Co-op’s last milk price update in January, and good levels of ongoing global demand for dairy.

The midpoint of the range, which farmers are paid off, is now NZ$9.60 per kgMS, representing a cash injection of over $14 billion into New Zealand’s economy.

Fonterra’s current 2021/22 earnings guidance of 25-35 cents per share remains unchanged.