Fonterra's revised milk price forecast for the 2014-15 of $4.70/kgMS, assumes that whole milk powder prices will soon move higher and will be priced above US$3,000/tonne by April 2014. The price projection trend is similar to the previous trend forecast when the milk price was at $5.30/kgMS just the recovery has been delayed by approximately 3 months.
Comparison of forecast WMP Prices between the September $5.30 forecast and December $4.70 forecast
Source: Fonterra
The AgriHQ Farmgate Milk Price of $4.25/kgMS assumes a slower recovery in dairy commodity prices than that forecast by Fonterra. On the NZX Dairy Futures market whole milk powder contracts are currently trading at or below $2,500/tonne right through to the end of the 2014-15 milk production season.
Click here to use the AgriHQ Milk Price Calculator to see more details of how the milk price is calculated.
Click here to download Fonterra's Networkers' Business Update
