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New Zealand Farmgate Milk Price Revision – Dec ’14

  • December 11, 2014
  • by wbabler
Fonterra Co-operative Group Limited recently reduced its forecast Farmgate Milk Price for the ’14-’15 production season from $5.30/kgMS to $4.70/kgMS. Chairman John Wilson noted that falling oil prices, geopolitical uncertainty in Russia and Ukraine, and subdued demand from China has contributed to ongoing volatility and weak demand in global dairy markets, leading to the downward price revision. The 11.3% downward revision from the previous September forecast ’14-’15 Farmgate Milk Price of $5.30/kgMS was fairly consistent with the 10.1% decline in the GlobalDairyTrade Price Index over the same period. The forecast ’14-’15 Farmgate Milk Price is significantly below historical figures, down 44.0% YOY and 30.9% below the five year average Farmgate Milk Price. Fonterra is required to consider its forecast Farmgate Milk Price every quarter as a condition of the Dairy Industry Restructuring Act. New Zealand Farmgate Milk Price - Dec
U.S. Milk Production Projections Flat for 2014, Slightly Reduced for 2015 – Dec ’14
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