Fonterra has raised the midpoint of its forecast milk price for 2024/25 to NZ$10kgMS, with a range of NZ$9.50kgMS—NZ$10.50kgMS, reflecting continued strength in the global dairy market.

 CEO Miles Hurrell said Chinese demand recovery and ongoing strong demand from Southeast Asia lifted confidence along with slowing milk production in the US and EU.

Fonterra also confirmed its forecast FY25 earnings at 40c—60c per share as a higher milk price is expected to be offset by improved sales volumes, product mix and pricing.

Meanwhile, the coop’s milk intake rose 2.5% YOY in October to 205mkg of milk solids in  New Zealand, according to the latest Global Update, taking seasonal production 4.7% ahead of the prior year comparative.      

North Island intake rose 4.6% YOY for the month due to favourable weather conditions contributing to strong pasture growth, with the season 5.9% YOY. In the South Island, milk collections slid 0.2% YOY due to heavy rainfall in the leading to excessive water in some lower areas. Season to date collections are 2.6% below the prior year comparative.

Fonterra expects milk collections to reach its a four year high of  1.498bn kg of milk solids in 2024/25, up from 1.47bn kg of milk solids in the prior season.