NEW ZEALAND – Fonterra has maintained its current forecast farmgate milk price for the season, however has flagged some risks in the international dairy market.
In a statement, the dairy co-op’s Chairman, John Monaghan said it had reviewed the 2019/2020 forecast in line with obligations under the Dairy Industry Restructuring Act (DIRA).
“We have maintained the current forecast range of $6.25 to $7.25 per kgMS, and the Advance Rate schedule, which is set off $6.75 per kgMS,” he said.
“It is still early in the season with around 2 percent of our forecast full season milk volume collected to date, so we are retaining a range of +/- 50c per kgMS,” said Mr Monaghan.
The range would narrow as the season progresses and there was greater certainty on production and sales.