NEW Zealand dairy farmers are looking forward to some cream in their mail boxes after milk giant Fonterra announced an opening forecast farmgate milk price of NZ$7 (£3.62) a kilogram of milk solids (kgMS) for the 2018/19 season.
The co-op also boosted its 2017/18 farmgate milk price forecast by 20 cents (10.3 pence) to NZ$6.75 (£3.49) a kgMS.
Chairman John Wilson said the strong 2018/19 opening milk price will be welcome news for farmers as they look ahead to the new season.
“What we are seeing is a continued positive global supply and demand picture,” he says.
“Demand is expected to remain strong – especially from China. We are expecting the global dairy market’s current prices, especially for fats, to continue throughout the new season.”
Fonterra is also forecasting New Zealand 2018/19 milk collections to be 1,525 million kgMS, a 1.5-per-cent increase on its forecast for the current season, and expects to see a lift in supply from the European Union, United States, Australia and Argentina.
Wilson says the 2017/18 price forecast increase reflects a global supply and demand picture that continues to be positive for farmers.
“Global dairy prices have risen since the start of the season,” he says