Fonterra Co-operative Group, New Zealand’s largest dairy company, has revised its 2023/24 season milk price forecast downward for the second time this month. The decision comes in response to falling Global Dairy Trade (GDT) prices, particularly in whole milk powder. Fonterra’s chief executive, Miles Hurrell, highlighted the 10.9% drop in whole milk powder prices in the latest GDT trading event, leading to the need for the revised forecast. Reduced demand from key importing regions for whole milk powder has contributed to the price decline. While Fonterra expects demand to recover in the latter half of FY24, growth might be slower than initially anticipated. Fonterra has adjusted its milk price forecast range from $6.00 – $7.50 per kilogram of milks solids (kgMS), with a midpoint of $6.75 per kgMS, down from the previous range of $6.25 – $7.75 per kgMS, with a midpoint of $7.00 per kgMS.
