Fonterra lifts milk price, set to contribute $11.5 billion to NZ economy
4 Mar, 2021 08:10 PM
3 minutes to read
Fonterra has lifted its 2020/21 forecast farmgate milk price range to $7.30-$7.90 per kg, up from $6.90-$7.50 per kg.
The midpoint of the range, off which farmers are paid, increased to $7.60 per kg.
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At that level the milk price would be one of the highest in Fonterra's 20-year history and comfortably above Dairy NZ's breakeven estimate of $5.80-$5.90/kg.
The co-op paid $7.59/kg in 2007/08, $7.60/kg in 2010/11, a record $8.40/kg in 2013/14 and $7.14/kg last season.
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Chief executive Miles Hurrell said the lift in the forecast was a result of consistently strong demand for New Zealand dairy products.