Following Fonterra’s 75c increase to $6/kg, announced on November 18, second-largest company Open Country has raised its forecast to $5.60 to $5.90 and third-largest Westland Milk Products has forecast a range of $5.50 to $5.90.
Synlait has matched Fonterra with $6 and the Central Plateau processor Miraka has indicated a range of $5.80 to $6.
The small Waikato co-operative Tatua has a forecast range of $6 to $6.50 which, at the upper end, is the same as Fonterra’s expectation of $6 from milk plus 50c-60c from earnings, before retentions.
All companies have cited the much-improved level of world dairy prices stemming from reduced milk production in New Zealand, the world’s largest dairy exporter.
The Global Dairy Trade price index has risen 50% since the June 1 start of the season.
Fonterra, which collects about 85% of all NZ milk, said it expected to receive 7% less milk this season compared with the previous season.
Fonterra’s milk payout forecast, which began in late May at $4.25 has risen 40% to $6.
The increase, when fully paid to farmers by spring next year, would be worth $3 billion collectively and $275,000 average per farm.
