Fonterra’s Farmgate Milk Price falls, revenue rises

Company News

by Jessica Amir

Global dairy company, Fonterra Co-Operative Group (ASX:FSF) has dropped its Farmgate Milk Price by $0.35 to $6.40 per kilogram of milk solids.

It comes as the Global Dairy Trade price for whole milk powder fell about 10 per cent since 1 August 2017 and Fonterra says that is a big influencer in its Farmgate Milk Price.

Fonterra’s revenue rose 4 per cent to $4 billion in the first quarter of this financial year, compared to the same time last year. Despite that, its sales volumes fell 20 per cent while its gross margin dropped.

The company says the results were generally as expected on the back of record low inventory due to wet weather.

Shares in Fonterra closed flat yesterday at $5.80.
 

Jessica Amir

Finance News Network
Jessica is a senior finance journalist and presents the Market Outlook, Market at Midday and Market Wrap. She also presents ASX company news and interviews CEOs. She joined FNN in January 2017 with six years of broadcast journalism experience. She worked as a journalist and producer with Sky News Business, ABC 1, ABC's The Business and ABC24. She also worked in regional Australia for Prime 7 and WIN News as a TV reporter. In her prior life she worked as a financial planner.