Chairman John Wilson said the revised forecast price is an increase of 25 cents (US$0.19) on the original forecast in May 2017, and reflects the ongoing rebalancing of supply and demand in global dairy markets.
Wilson said there is growing confidence across the country and, with global demand for dairy strengthening, the signs are for a good start to the season for Fonterra’s farmers and their rural communities.
He cautioned, however, that there had been a challenging period of very wet conditions for some farmers.
Chief executive Theo Spierings said Fonterra is well positioned to take advantage of improving demand for dairy nutrition across its ingredients, consumer and foodservice markets.
“Our forecasts are prudent given that we are still early in the season and we are starting with very low levels of inventory, and we are focused on continuing to demonstrate strong business performance so as to bring greater returns for our farmers,” Spierings said.