Farmers faced with the uncertainty of the disease Mycoplasma bovis at least have high milk prices to look forward to after Fonterra issued one of the strongest opening farmgate milk price forecasts yet.

The co-operative today upgraded its forecast for the current season to $6.75/kg of milksolids from $6.55, and pitched its opening forecast for 2018/19 at $7.00/kg.

The flipside for shareholders and owners of Fonterra’s NZX-listed units is that high milk prices are Fonterra’s greatest input cost.

The high milk price prompted a cut in Fonterra’s earnings forecast to 25c-30c a share to its dividend to 15c- 20c, which in turn prompted a 39c (6.8 per cent) fall in the unit price to $5.35.

Continue Reading…

Back to Latest