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.