Fonterra raises 2024/25 farmgate milk price forecast

Fonterra has raised the midpoint of its 2024/25 season forecast farmgate milk price to $10 per kilogram of milk solids.

The new forecast range is $9.50-$10.50/kgMS.

The increase in the farmgate milk price was attributed to the ongoing strength of the global market.

Fonterra's chief executive, Miles Hurrell, said there has been a recovery of demand in Greater China and strong demand from Southeast Asia.

He also noted that milk production in the US and Europe is still being impacted by local factors.

Fonterra's forecast earnings for the 2024/25 financial year remain unchanged at 40-60 cents per share.