Fonterra has announced an opening farmgate milk price range of NZ$7.25kgMS—NZ$8.75kgMS with a midpoint of NZ$8kgMS. Fonterra also narrowed its 2023/24 range to NZ$7.70kgMS-NZ$7.90kgMS, maintaining a midpoint of NZ$7.80kgMS.

The midpoint opening price for Fonterra’s organic milk sits at NZ$10kgMS, in a range of NZ$9.25kgMS—NZ$10.75kgMS. The current season’s organic milk prices rose to a range of NZ$10.40kgMS—NZ$10.60kgMS, up from NZ$9.70kgMS-NZ$10.30kgMS.

Fonterra CEO Miles Hurrell said prices are guided by recent lifts across some commodities on GDT. Hurrell stressed the ongoing volatility in global dairy markets creating a backdrop of uncertainty for the outlook.

The farmgate milk price update is in conjunction with Fonterra’s Q3 results which saw a 2% lift in continuing operations’ profits after tax to NZ$1.013bn. Reported profit after tax fell –27% YOY to NZ$973m.