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Fonterra FY25 forecast Farmgate Milk price strengthens, FY24 earnings guidance updated
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Friday, 30 August, 2024, 13 : 00 PM [IST]
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New Zealand
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Fonterra Co-operative Group Ltd., has announced a 50-cent increase in the forecast Farmgate Milk price midpoint for the 2024/25 season, alongside an uplift to the FY25 Advance Rate Schedule, and advised its FY24 earnings are forecast to be at the top end of the announced range of 60-70 cents per share.
CEO Miles Hurrell said the announcements reflect the recent lift in GDT prices as well as the strength of the co-op’s balance sheet. He said, “Since announcing our opening FY25 season forecast Farmgate Milk Price in May, GDT prices have improved. We’ve reflected this in our revised forecast range, with our midpoint lifting 50 cents to $8.50 per kgMS. It’s still early in the season, with a relatively small proportion of our sales book contracted, so we are maintaining a wide forecast range. Our new forecast range is $7.75-$9.25 per kgMS, up from $7.25-$8.75 per kgMS.”
“We’re also pleased to be announcing an uplift in our Advance Rate payment schedule, which will see farmers paid more for their milk earlier in the season. Our balance sheet strength has allowed us to make several enhancements to the Advance Rate schedule over the last two seasons. The adjustments announced today will see farmers paid 10% more of the FY25 forecast Farmgate Milk Price from December paid January compared to other seasons, assisting farmers with on-farm cash flow,” said Hurrell.
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