Oct 9 (Reuters) – New Zealand’s Fonterra Co-Operative
Group on Monday raised its farmgate milk price forecast
for the 2023-24 season, first time after cutting the forecast
range twice earlier.
The world’s largest dairy exporter now expects to pay
NZ$6.50 to NZ$8.00 per kilogram of milk solid (kgMS) for the
2023-24 season, up from its earlier forecast of NZ$6.00 to
NZ$7.50 per kgMS.
Global Dairy Trade (GDT) prices surged while its sales
volumes dropped, according to September’s second GDT auction.
The company has seen a rise in demand after a recent gain in
GDT prices but flagged worries over China demand prospects.
“For other key regions, customers remain relatively cautious
in terms of their forward purchases,” said CEO Miles Hurrell.
The company expects New Zealand milk collections for the
2023-24 season to be marginally lower compared to the last
season while adding that total milk growth among key exporters
would be below average for fiscal 2024.
(Reporting by Manvi Pant in Bengaluru; Editing by Lisa
Shumaker)
