Fonterra reiterated its 2020/21 season forecast range of NZ$5.90 – NZ$6.90kgMS, due to a finely balanced global market with increasing demand and supply.

However, Fonterra chairman John Monaghan was cautious in view of a forecast economic slowdown that likely to increase global unemployment and reduce consumer demand. Global milk production has bounced back, and Fonterra expects volumes in the EU and US to be up on last year.  “At this early stage of the season, any movement in the market can have a significant impact on our milk price,” he said.