News
Fonterra forecasts milk price rise
30 May 2016Fonterra has announced an opening forecast Farmgate Milk Price of NZ$4.25 per kgMS for the 2016/17 season, an increase of 35 cents on the forecast for the current season.
Fonterra has announced an opening forecast Farmgate Milk Price of NZ$4.25 per kgMS for the 2016/17 season, an increase of 35 cents on the forecast for the current season.
Chairman John Wilson said the Co-operative’s forecast took into account a range of factors including the high NZD/USD exchange rate, supply volumes from other major dairying regions, current global inventory levels, and the economic outlook of major dairy importers. “Conditions on farm are very challenging,” said Wilson. “The strength of the Co-operative’s balance sheet is enabling us to increase the advance rate in the first half of the new season. “We will also bring forward payments for this season’s milk. This will provide some assistance with on-farm cashflows. “We are doing this while remaining within our policies and maintaining our financial discipline.The New Zealand dollar is relatively high and is currently impacting milk prices and our forecasts.We are expecting global dairy pricing to gradually improve over the season as farmers globally reduce production in response to ongoing low milk prices, however we continue to urge caution with on-farm budgets. We will announce our forecast earnings per share for the 2017 financial year in July as normal. This, along with our forecast Farmgate Milk Price, comprises the total available for payout to our farmers.”Chief Executive Theo Spierings said the long term fundamentals for global dairy remain positive with demand expected to increase by two to three per cent a year due to the growing world population, increasing middle classes in Asia, urbanisation and favourable demographics.“In addition to global supply growth slowing, we are seeing imports into major dairy markets improving compared to a year ago,” said Spierings. “China dairy consumption growth remains positive and its demand for imports has been steady over recent GlobalDairyTrade events. We expect these drivers to result in the globally traded market rebalancing. We will remain focused on securing the best possible returns for our farmers by converting their milk into high-value products for customers around the world.”Related news
Empowering innovation in fortification and colouration
13 Nov 2025
Divi’s Nutraceuticals offers a large portfolio of innovative, high-quality ingredients for foods, beverages, and supplements, with bespoke solutions and expert support for product success.
Read more
Danone highlights digestive health as potential ‘tipping point’ for food industry
13 Nov 2025
Danone is betting on a food industry “tipping point” that will bloat the market for healthy products, particularly those related to gut health.
Read more
Standing Ovation and Bel scale up casein production from dairy co-products
11 Nov 2025
Foodtech company Standing Ovation has partnered with cheese specialist Bel Group to manufacture dairy serums for industrial-scale casein production via precision fermentation.
Read more
New UPF standard hoped to offer consumers ‘coherence and clarity’
10 Nov 2025
Ingredients companies are being urged to enter “a new era of partnership and innovation” following the launch of the industry’s first non-UPF verification scheme.
Read more
Whistleblowers accuse UK meat industry of promoting cheap, unsustainable supply
7 Nov 2025
An anonymous group of industry insiders has accused the UK’s biggest food companies of systematically driving down meat quality and welfare standards.
Read more
Cottage cheese makes a comeback as consumers call for cleaner labels
6 Nov 2025
From ice cream to dips and ready meals, cottage cheese is experiencing a renaissance as a high-protein, clean ingredient for health-conscious consumers.
Read more
Bord Bia presents Irish dairy ingredient suppliers at Fi Europe
6 Nov 2025
Dairygold Co-operative Society, The Carbery Group, and Ornua Co-operative: Meet with sustainable producers of Irish dairy ingredients at Food ingredients Europe 2025, Hall 7.2 Stand M18.
Read more
Faravelli at Fi Europe: Showcasing FARA® functional solutions for food and nutra
28 Oct 2025
At Fi Europe 2025 in Paris (stand 72M39), Faravelli showcases FARA® Customized Functional Solutions and a wide ingredient portfolio for food and nutra – delivering quality, innovation, and expertise.
Read more
Agrigum Redefined FIBER
27 Oct 2025
Agrigum has transformed gum acacia into a natural, science-backed fibre that supports gut health, sustainability, and innovation across global food and nutrition applications.
Read more
Expanding boundaries in food & beverage innovation
23 Oct 2025
IMCD and FrieslandCampina Professional expand partnership to deliver Kievit® across EMEA, enabling brands to enhance quality and accelerate time-to-market for tomorrow’s food & beverage creations.
Read more