Key points
Dairy co-op Fonterra has increased its forecast milk price by 50c, with the mid-point of its estimated range lifted to $8.50 a kg of milk solids from $8.
Fonterra also said its earnings for the year to July would be at the top end of its 60-70c a share guidance range.
“This puts us on track for a strong full-year dividend,” said chief executive Miles Hurrell.
The announcement reflected a lift in commodity prices on the GDT auction since the opening forecast in May, as well as the strength of its balance sheet, he said.
The new forecast range is $7.75 to $9.25 a kg, up from $7.25 to $8.75.
Hurrell said Fonterra would also pay formers a higher advance rate.
“The adjustments announced today will see farmers paid 10% more of the FY25 forecast farmgate milk price from December, paid January, compared to other seasons, assisting farmers with on-farm cashflow,” said Hurrell.
Fonterra will announce its full-year results in September.
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Fonterra lifts milk price forecast, dividend outlook
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