Dairy company, Fonterra (ASX:FSF) has increased its forecast Farmgate milk price by 20 cents $6.75 per kilo for the season.
Farmgate milk price is the price farmers receive from processors for the milk they produce.
The company says the strong opening price would be very welcome news for the co-operatives farmers as they look ahead to the new season.
Fonterra says it’s seeing a positive global supply and demand picture, with global dairy prices rising since the start of the season.
Shares in Fonterra (ASX:FSF) closed 0.94 lower to $5.25 yesterday