Fonterra lifts forecast farmgate milk price with strong annual earnings

WELLINGTON Aug. 23 (Xinhua) — New Zealand’s dairy giant Fonterra on Friday announced a 50-cent increase in the forecast farmgate milk price for this season, as well as strong annual earnings.
Fonterra’s current season forecast farmgate milk price is up by 50 cents to 8.5 NZ dollars (5.23 U.S. dollars) per kg of milk solids, which reflected the recent lift in Global Dairy Trade prices as well as the strength of the co-op’s balance sheet, said chief executive Miles Hurrell.
However, as it is still early in the season, Hurrell said they are maintaining a wide forecast range of 7.75-9.25 NZ dollars (4.77-5.69 U.S. dollars) per kg.
The co-op also announced an uplift in the advance rate payment schedule, which will see farmers paid more for their milk earlier in the season.
Fonterra also advised that its outgoing financial year’s earnings from continuing operations are forecast to be at the top end of the announced range of 60-70 cents per share, with its final earnings in financial year 2024 and full-year dividend to be announced in September.
The co-op maintained strong performance throughout financial year 2024, which ended on July 31, and it “puts us on track for a strong full year dividend,” Hurrell said. ■