Fonterra revises its 2021/22 forecast Farmgate Milk Price

Fonterra Co-operative Group Limited has revised its 2021/22 forecast Farmgate Milk Price range from $9.30 - $9.90 per kgMS to $9.10 - $9.50 per kgMS, reducing the midpoint of the range from $9.60 to $9.30 per kgMS.

The revision is due to a number of recent events which have impacted global demand for dairy products, including lockdowns in China, an economic crisis in Sri Lanka and a Russia-Ukraine conflict.

Despite this, the midpoint of $9.30 remains the highest forecast Farmgate Milk price in the Co-op’s history and would contribute almost $14 billion into New Zealand’s economy.