Fonterra revises forecast Farmgate Milk Price
Further cuts have today been announced for the 2018/19 Fonterra forecast Farmgate Milk Price.
Today's announcement brings the price down to a range of $6.00-$6.30 from $6.50 per kilogram of milk solids.
Fonterra Chairman John Monaghan says the revision in the forecast Farmgate Milk Price range is due to the global milk supply remaining stronger relative to demand, which has driven a downward trend on the GlobalDairyTrade index since May.
He says since the October milk price update, production from Europe has flattened off the back of dry weather and rising feed costs. US milk volumes are still forecast to be up one per cent for the year.
Local Dairy Farmer Wilson James says it's not entirely unexpected as the global market is so competitive.