Eastern Bay Farmers Concerned Of Significant Cut In Fonterra's 2023/24 Payout
Eastern Bay dairy farmers are feeling deflated following a major cut in Fonterra's 2023/24 season forecast Farmgate Milk Price range.
The co-operative announced on Friday, a reduction to $6.25 to $7.75 per kgMS with a midpoint of $7.00 per kgMS.
It's a drop from their previous forecast of $7.25 to $8.75 per kgMS with a midpoint of $8.00 per kgMS.
Fonterra CEO Miles Hurrell says the revised forecast Farmgate Milk Price range reflects ongoing reduced import demand for whole milk powder from Greater China.
“When we announced our opening 2023/24 season forecast Farmgate Milk Price in May, we noted it reflected an expectation that China’s import demand for whole milk powder would lift over the medium-term,"
“Since then, overall Global Dairy Trade (GDT) whole milk powder prices have fallen by 12%, and China’s share of whole milk powder volumes on GDT events has tracked below average levels," Hurrell says.
“This reflects a current surplus of fresh milk in China, resulting in elevated levels of local production of whole milk powder, and reducing near-term whole milk powder import requirements,"
“The medium to long term outlook for dairy, in particular New Zealand dairy, looks positive with milk production from key exporting regions flat compared to last year,” Hurrell says.
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