Global dairy giant Fonterra comments
- Announced an opening forecast farmgate milk price of $4.25 per kgms for the 2016/17 season
(note this forecast is under expectations)
- Say "conditions on farm are very challenging"
- Says "we are expecting global dairy pricing to gradually improve over the season "
- "New Zealand dollar is relatively high and is currently impacting milk prices and our forecasts"
More:
- Long term fundamentals for global dairy remain positive with demand expected to increase by two to three per cent a year
- There is no change to the current 2015/16 season forecast farmgate milk price, which is being held at $3.90 per kgms
- In addition to global supply growth slowing, we are seeing imports into major dairy markets improving compared to a year ago
- China dairy consumption growth remains positive
Via Reuters
-
NZD off 25 or so points
- The farmgate milk price forecast for 2016/17 at $4.25 is lower than what was generally expected (were around NZD4.60 - 4.80)
