FONTERRA CO-OPERATIVE GROUP LIMITED Opening average farmgate milk price of $5.60 per kilogram of milk solids (kg/MS) for 2015/16 season
- Opening average farmgate milk price of $5.60 per kilogram of milk solids (kg/MS) for 2015/16 season
- Forecast average closing farmgate milk price range of $5.80 - $6.00 kg/MS for 2015/16 season
Fonterra Australia is pleased to advise that its opening farmgate milk price for the 2015/16 season is $5.60kg/MS, with a forecast closing range of $5.80 - $6.00 for the 2015/16 season. This price is on the basis of an anticipated recovery in global prices in the first half of 2016 and the continued softening of the Australian dollar.
Our opening price and forecast closing range are more cautious than recent seasons. This reflects the challenging global market and our commitment to ensuring the price we offer is both competitive and deliverable.
The global environment remains particularly volatile. Since December we have seen commodity prices decrease due to increased global production and a resulting oversupply of dairy commodities. This has coincided with weakening demand which has had some impact locally.
Although global conditions are challenging, the longer term fundamentals remain positive for Fonterra, with the planned Beingmate joint venture partnership with our Darnum site central to Fonterra's multi hub strategy to make Australia its hub for cheese, whey, and infant nutritionals.
Individual suppliers' milk prices will vary across Fonterra's supply regions, depending on the individual farm's milk profile, regional production factors, milk quality and farm management systems.
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