Fonterra raises 2024/25 farmgate milk price forecast

Fonterra has raised its forecast for the 2024/25 farmgate milk price, with the midpoint now at $9 per kilogram of milk solids.

This is a 50-cent increase from the previous forecast.

The co-operative cited the strengthening of Global Dairy Trade prices and constrained milk supply in key producing regions as the reasons for the upward revision.

Fonterra's new forecast farmgate milk price range for the 2024/25 season is $8.25-$9.75 per kgMS.

In addition, the company provided its earnings guidance for the 2024/25 financial year, with a range of 40-60 cents per share.

Fonterra said the forecast earnings range reflects the expectation of maintaining strong margins in all three sales channels, while also investing in IT and digital transformation and incurring higher tax expenses.