Fonterra Chief Operating Officer of Velocity and Innovation, Judith Swales, said that this was a responsible opening price that reflects current market conditions.
“Our forecast is based on the Australian dollar holding at around 74 cents to the US dollar and reflects the revenue we expect to earn on products produced using our manufacturing assets.
“Our farmgate milk price in Australia is also impacted by global dairy markets given our mix of domestic and export sales.
“While we are still seeing an imbalance between global milk supply and demand there are signs in key milk producing areas of a slowdown in production and increased imports into key markets such as China, Asia and Latin America. This supports our view of a recovery in global prices as we move through the season.”
Fonterra is focused on building on its Ingredients strengths by making Australia Fonterra’s global hub for cheese, whey, and nutritionals, complementing our Consumer and Foodservice businesses:
“We are focussing on the future, and are continuing to build a strong Australian business that is here for the long term.,” said Ms Swales.
Individual suppliers’ milk prices will vary across Fonterra’s supply regions, depending on the individual farm’s milk profile, regional production factors, milk quality and farm management systems.