Fonterra Australia forecasts a closing farmgate milk price between $5.50 to $6.20 per kilogram of milk solids for the 2018-19 season.
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No opening price has been set by Fonterra for the 2018-19 season yet, but the processor set its Fixed Base Milk Price as $5.90 per kilogram of milk solids.
The closing price range is based on continued positive global supply and demand, especially from China, with these dairy prices expected to continue throughout the new season, Fonterra Australia managing director René Dedoncker said.
“We are keeping to our promise to provide farmers with clear market-based signals in advance of the new season to allow them budget and plan,” Mr Dedoncker said.
“Our business is in good shape as we continue to focus on driving sustainable performance,” he said.
Fonterra Australia has been building long-term relationships with strategic partners, such as cheese markets like China and Japan, to tap into growing domestic and global demand.
“At the same time, we continue to make efficiency improvements which means we have the right asset base to play to our strengths in cheese, whey and nutritionals,” Mr Dedoncker said.
“We are confident that our strategy and the strength of our three business channels – consumer, foodservice and ingredients – will enable us to continue to pay a competitive price next season. We expect seasonal growth from our existing farmers to continue next season which will meet our customer demand.”