Fonterra expects strong 2024, increases milk price forecast
Fonterra to report fiscal 2024 results on September 25
23 August 2024
1 minute read
By: New Zealand's Fonterra Co-operative Group said on Friday it expects earnings for fiscal 2024 to be at the top end of its forecast range of 60-70 New Zealand cents per share, adding it puts the dairy firm on track for a strong full-year dividend, reported Reuters.
The dairy company also hiked its 2024-2025 season's forecast for farmgate milk price, citing strengthened global dairy prices and improved balance sheet for the company.
Fonterra said it now expects its forecast range for its farmgate milk price - the price it pays to farmers for milk - to between NZ$7.75-NZ$9.25 per kilogram of milk solids (kgMS) from the earlier range of NZ$7.25-NZ$8.75 per kgMS, an uplift of 50 New Zealand cents to its midpoint.
"The adjustments announced today will see farmers paid 10% more of the fiscal 2025 forecast farmgate milk price from December paid January compared to other seasons, assisting farmers with on-farm cash flow," said Fonterra CEO Miles Hurrell.
Fonterra is due to report its fiscal 2024 results on September 25.
