Fonterra increases farmgate milk price forecast by 25 cents

Company News

by Roma Christian

Fonterra Co-operative Group Limited (of Fonterra Shareholders Fund) (ASX:FSF) has increased its forecast of Farmgate Milk Prices by 25 cents, for the upcoming 2018 season. It comes on the back of rising global dairy demand.

The New Zealand based dairy exporter, forecasts a price of $6.75 per kilogram of milksolids (kgMS), which is up from the original forecast of $6.50 per kgMS in May 2017.

The company also announced a forecast earnings per share range of 45 to 55 cents.

Fonterra says this makes the forecast total available payout to farmers, for the 2017/2018 season, $7.20 to $7.30 before retentions.

Shares in Fonterra Shareholders Fund (ASX:FSF) last traded 0.53 per cent higher to $5.66.

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