The Fonterra Shareholders' Fund has increased its forecast farmgate milk price for the 2024/25 season and provided an update on its earnings guidance for the 2023/24 financial year.
The forecast farmgate milk price midpoint has been raised by 50 cents to $8.50 per kilogram of milk solids.
This increase is attributed to the recent improvement in Global Dairy Trade prices and the company's strong balance sheet.
Fonterra also announced an uplift to the advance rate schedule for the 2024/25 season, which means farmers will be paid more for their milk earlier in the season.
As for the FY24 earnings, Fonterra expects them to be at the top end of the previously announced range of 60-70 cents per share.
The final earnings for FY24 will be confirmed in September.
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