Fonterra New Zealand has lifted its 2023/24 forecast farmgate price to a range of NZ$6.50kgMS to NZ$8.00kgMS, with its midpoint now sitting at NZ$7.25kgMS, lifting NZ50c from the previous forecast.

Fonterra CEO Miles Hurrell said the improved outlook reflects both supply and demand dynamics as domestic milk collections are forecast slightly below last season, while aggregate milk growth in key exporters is expected below average for FY24. Hurrell said recent increases in GDT events were encouraging but not yet clear if stronger Chinese demand would be sustained. The CEO said Fonterra continues to face exposure to volatile commodity prices as well as exchange rate instability.