Fonterra revised its 2023 forecast earnings guidance to NZ45c – NZ60c per share, up from NZ30c – NZ45c per share and revised its forecast milk collections for the 2022/23 season down from the earlier forecast of 1,510m kgMS to 1,495m kgMS. Fonterra 2023 forecast milk collections are 1.2% ahead of the 2021/22 total milk intake of 1,478m kgMS, but 1.1% behind the five-year average.

Fonterra CEO Miles Hurrell said the hike in forecast earnings was a result of ongoing strong demand for dairy, which also saw Fonterra confirm its FY22 earnings at the top end of the guidance range.

Hurrell said demand signals at the end of FY22 continued driving improved prices and higher margins across cheese and protein products. The latest lift in WMP prices on GDT is also interpreted as a positive signal reversing the recent easing in the prices that drive Fonterra’s farmgate milk price.