Fonterra has increased its farmgate milk price projection for the 2023/24 season to NZ$7.30-NZ$8.30, while profits remain steady at 50-65 cents per share. The firm has seen an increase in demand for its reference commodity items, especially from the Middle East and South East Asia, as indicated in GDT pricing. Overall, GDT costs have risen 10% since the previous Farmgate Milk Price Report in December, while whole milk powder prices have risen 11.5%. The potential effect of geopolitical instability and supply chain disruption on demand in major importing areas is unknown. Fonterra’s market size and variety give flexibility, and its cooperation with Kotahi guarantees that its goods are delivered to clients on a continuous basis. The business has also upped its farmgate milk price prediction for the third time in five months, by 50 cents, citing improving supply and demand dynamics.
