Business

Pressure goes on Fonterra’s milk price forecast after strong auction

"We could end up with an extra $4b added to incomes."

Higher Global Dairy Trade (GDT) auction prices, boosted by demand from China, are already putting pressure on Fonterra’s milk price forecast less than a fortnight after its latest upgrade. On November 10, the co-op raised the midpoint of the 2024/25 season forecast farmgate milk price from $9.00 per kgMS to $9.

50 per kgMS. Fonterra also narrowed the forecast range from $8.25 - $9.

75 per kg to $9.00 - $10.00 per kg.

This morning’s GDT auction saw prices continue their recent trajectory, the overall index lifting 1.9% to settle at an average price of US$4,089 ($6910) a tonne. The GDT index is at its highest point since July 2022.

.