Fonterra has lifted its FY25 midpoint forecast farmgate milk price by 50 cents to $10 per kilogram of milk solids (kgMS).
The diary giant says it reflects the ongoing strength of the global market.
Its previous best milk price was $9.30/kgMS, paid in 2021-22.
“We’re seeing a recovery of demand in greater China as domestic milk production rebalances and demand from Southeast Asia continues to be strong,” chief executive Miles Hurrell says.
“Looking at supply, milk production out of the US and Europe continues to be impacted by local factors, while production out of most regions of New Zealand has increased.
“We’re continuing to monitor factors that may influence global supply and demand dynamics, including any potential impact from heightened geopolitical uncertainty,” he says.
Fonterra’s Q1 profit after tax was $263 million, equivalent to earnings per share of 16 cents.
The company’s forecast earnings for FY25 remain unchanged at 40-60 cents per share.
