Fonterra Co-Operative Group Ltd
(ASX:FSF) has increased its Farmgate Milk Price by 50 cents. The new price is NZ$5.25 per kgMS.
The company says total payout to farmers this current season should be between $5.75 to $5.85 before retentions.
This is based on its forecast earnings per share in the 50 to 60 cent range in FY17.
The company also commented that global dairy markets are still volatile – with milk production around the world reducing in response to low milk prices. Although demand remains stable.
