CEO Miles Hurrell said that as Fonterra closes out the FY25 year, he was pleased to be in the position to increase the forecast for the 2024/25 season by 15 cents.
Fonterra Co-operative Group Ltd has increased the 2024/25 season forecast Farmgate Milk Price from NZD 10.00 per kgMS to NZD 10.15 per kgMS, with the range narrowing from NZD 9.70 - NZD 10.30 per kgMS to NZD 10.10 - NZD 10.20 per kgMS.
“We began the season with a wide forecast range to account for potential volatility in commodity prices and exchange rates resulting from geopolitical dynamics,” said Hurrell.
“However, Global Dairy Trade prices have remained stable, and when coupled with our well-contracted sales book, we have been able to increase our forecast Farmgate Milk Price across the season.”
Fonterra will confirm the final Farmgate Milk Price for the 2024/25 season alongside its FY25 annual results released in September.
Fonterra has also retained the NZD 10.00 per kgMS forecast for the current 2025/26 season and narrowed the range from NZD 8.00 - NZD 11.00 per kgMS to NZD 9.00 - NZD 11.00 per kgMS.
“Global Dairy Trade prices continue to be strong, supporting the NZD 10.00 per kgMS forecast midpoint for the current season. However, it’s still early in the season and the risk of volatility remains, which is reflected in the wide forecast range.”
The Co-op’s FY25 earnings of 65-75 cents per share remain unchanged.
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