Fonterra, New Zealand’s large cooperative, announced on November 10 that it is increasing its milk price forecast for the current dairy campaign (June 2024 to June 2025). The average price thus increases from 9 New Zealand dollars per kilo of dry matter to 9.5 NZD/kgMS. And the forecast price range increases from 8.25 – 9.75 NZD to 9-10 NZD/kgMS.
“This increase reflects the fact that more of the fiscal 2025 sales book has been contracted since the milk price forecast was last updated in September”indicates a press release from the cooperative. The good outlook is due to strong request for products of conveniencewhich helped drive up prices on the auction platform Global dairy trade : + 4.4% for the price of fat powder, very correlated to the price of New Zealand milk, + 8.3% for butter, + 4% for skimmed milk powder, + 4% for cheddar, to November 5.
“This demand was seen in China, where domestic milk production appears to be lower than expected, as well as in Africa, the Middle East and Southeast Asia.”specifies Fonterra.
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