New Zealand dairy cooperative Fonterra has lowered its 2021/22 farmgate milk price forecast, blaming global crisis that have had ‘short-term impacts’ on global demand for dairy products.

Fonterra cut its Farmgate Milk Price forecast range for the year from $9.30-9.90  per kgMS to &9.10-9.50 per kgMS. This reduces the midpoint of the range, which farmers are paid off, from $9.60 per kgMS to $9.30 per kgMS.

Fonterra CEO Miles Hurrell said the move reflected demand for dairy products which have been hit by the COVID-19 lockdowns in China, the economic crisis in Sri Lanka and the Russia-Ukraine conflict.

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