New Zealand’s Fonterra to pay farmers higher prices for milk in FY 2022/23
According to Reuters, New Zealand’s Fonterra said on Thursday that it is likely to pay a higher price to farmers for milk supply for the next fiscal year, courtesy of a jump in dairy demand and the appreciation in the US dollar.
“The world’s biggest dairy exporter expects to pay between NZ$8.75 and NZ$10.25 ($5.49 and $6.43) per kilogram of milk solid (kgMS) in the 2022-2023 financial year, up from a prior forecast of NZ$8.25 to NZ$9.75 per kgMS,” Reuters noted.
Fonterra’s Chief Executive Miles Hurrell said, “commodity prices have soared in response to strong continued demand for dairy, contributing to the higher price outlook.”
“Global interest rates and inflation have risen well above the company’s earlier assumptions,” he added.
NZD/USD is trading 0.30% lower on the day at 0.6252, as of writing. The encouraging news fails to impress kiwi bulls.