Fonterra increases its forecasted milk priceStaff Writer | November 24, 2016
Fonterra Cooperative Group Limited has increased its farmgate milk price to NZ$6/kgms or approximately 26.2ppl.
Dairy Fonterra has now lifted its price
When combined with Fonterra’s forecasted dividend of NZ$0.50 to NZ$0.60 per share, it means the total payout available to farmers for the 2016/17 season is forecast to be equivalent to 28.4ppl to 28.8ppl.
Fonterra has now lifted its price for the current season by 54% since it was originally announced.
However, movements in exchange rates mean that, when converted into a sterling equivalent, the Fonterra price is now almost double what it was at the start of the season.
Those exchange rate moves have meant New Zealand products are now more expensive in the UK. ■