Fonterra has announced a rise in its farmgate milk price, reflecting positive market conditions and strong demand for dairy products.
The cooperative has set its milk price forecast for the 2023-24 season at between AUD 8.75 and AUD 9.25 per kilogram of milk solids, a significant increase that is expected to benefit local farmers.
Fonterra’s Chief Executive, Miles Hurrell, highlighted the reasons behind the increase, stating, “Our farmers are facing rising costs, and it’s important we support them during these challenging times. This price increase is a testament to the strong global demand for dairy and the quality of our products.”
In addition to the milk price increase, Fonterra has provided its earnings guidance for the financial year 2025, projecting an increase in profits driven by robust international markets. The cooperative anticipates earnings before interest and tax to range between AUD 800 million and AUD 1 billion.
Hurrell noted that Fonterra is committed to maintaining its strong position in the global dairy market. “We are focused on delivering value to our farmers while ensuring sustainable growth for our cooperative,” he added.
This announcement comes at a time when the dairy sector is navigating challenges, including fluctuating input costs and changing consumer preferences. By lifting the farmgate milk price and providing positive earnings guidance, Fonterra aims to reinforce its support for farmers and bolster confidence in the dairy industry.
Overall, this strategic move underscores Fonterra’s commitment to sustainability and its role as a leader in the dairy sector, positioning itself for continued success in a competitive global market.