Fonterra’s Post

Positive news from Fonterra today 🐄💰 With a confident stride, they've refined the forecast for farmgate milk prices to $7.50-$8.10 per kg of milksolids and increased the advance rate payments for the season. They have also updated the dividend payment to 15c a share. This boost mirrors their robust half-year performance, promising a brighter future for our dairy farmers. We have updated our the Dairy Forecaster in Farm Focus to reflect these changes. 🌿🥛 #DairyFarming #SustainableFuture 🔗 Read more here: https://ow.ly/VUev50QYcTz

With all the discussion and media interest leading up to the new milk season, we wanted to be clear ADPF cannot and will not provide commentary on what the actual farmgate milk price should be in FY2025. Dairy processors will develop their own view of the farmgate milk price they will pay for the new season, with careful consideration on their product and market mix. Dairy processors want to pay a fair price to the farmers they work with. However, the price paid must be sustainable – so processors can remain economically viable. We understand dairy farmers are also facing cost pressures. This is why it’s essential the price paid to dairy farmers can be sustainably maintained for the year ahead.    What ADPF can do is provide the facts about the variables impacting raw milk prices and the dynamic domestic and global markets conditions at play. We can also provide information that can help grow understanding about how farmgate milk prices are set, because it is complex. Our goal is for a strong, vibrant dairy industry – right across the supply chain – and to keep dairy manufacturing local! If you’re keen to understand more our Milk Value Portal provides a credible source of information on the factors influencing milk price. To read the facts: adpf.org.au Visit the portal: milkvalue.com.au. Janine Waller John Williams Kristin Favaloro

A busy week for dairy sector news. Here’s a wrap from BusinessDesk NZ: - Synlait Milk Limited reported a net loss of $182.1 million and stumped up with a one-off payment to try to keep its supplying South Island farmers. https://lnkd.in/gkRJuEGB - Fonterra increased its target average return on capital and its dividend policy as it looks to deepen its focus on its ingredients and food service businesses. It has also flagged a “significant” capital return should it sell its consumer business. https://lnkd.in/gyambfyy - The a2 Milk Company confirmed it is in discussions to potentially buy a manufacturing facility. https://lnkd.in/gjgJ4nJJ - “It’s game on.” That’s how Grant Watson, chief executive of the embattled Synlait Milk, describes the fight for milk supply. https://lnkd.in/gnFpU_XU - Dairyworks is expected to grow significantly in the next three to four years. https://lnkd.in/ghN5W4tg - Taupō-based dairy processor Miraka Limited upped its forecast milk price for the season. https://lnkd.in/g9wwuvQq - Yashili NZ Dairy Company Limited has been referred to the Ministry of Business, Innovation and Employment's enforcement unit after failing to file its accounts on time. https://lnkd.in/gzBRDTKV - Tatua Co-operative Dairy Company Ltd said it would pay its farmer-owners $10.50 per kilogram of milksolids for the 2024 season. https://lnkd.in/ggESGxp7

Dairy is shaping up for success with a series of major strategic deals, buoyed by slowing inflation and stabilising costs Read The Dairymen 2024 here:

Food and vegetable grower and marketer T&G Global has trimmed its half-year losses compared to last year, as it makes progress delivering its strategy and continues to recover from the impact of Cyclone Gabrielle. For six months ending June 30, 2024, T&G Global reported an operating loss of $2.6 million, compared to $11.6m for the same period last year. Net loss before tax was $8.2m compared to $21.4m last year.

#Cheese and #butter trade continues to outperform fueled by robust #consumer demand. In our latest Dairy Quarterly, Mary Ledman and Lucas Fuess highlight that February marked the largest monthly butter production and highest monthly cheese export in history. Still, the broader U.S. dairy market remains in deflation with #CPI down for seven straight months for the first time since 2016. How will the second quarter look for dairy? Find out: https://bit.ly/3wZWVJU #NationalCheeseDay

Practically every new dollar that enters the U.S. beef industry originates from consumers who purchase beef products. When consumer beef demand is robust, beef industry participants flourish. But when demand is sluggish, industry participants are immensely challenged. Anything producers can do to positively influence consumer demand for beef will ultimately benefit them. https://buff.ly/3S4tVap

The dairy industry’s Milk Value Portal now provides five years of farmgate milk pricing (FMP) data, Milk Supply Agreements (MSAs) and their contract features – including the new FY24/25 season. We encourage farmers and anyone else interested in understanding more about the value of raw milk across Australia and what’s influencing this to use the portal. It’s a one-stop shop providing credible, transparent and comprehensive data on farmgate milk pricing, and insights into current and historical prices and market trends. It can answer questions like: 💹 What incentives are on offer? 🧀 How are dairy commodities (cheese, butter and milk powders) performing? 🌏 How are our global competitors tracking? Visit: milkvalue.com.au John Williams Janine Waller Kristin Favaloro Dairy Australia Gardiner Foundation Australian Dairy Farmers

Our CEO Janine Waller has today provided an update on how global market conditions are impacting the new season’s southern region farmgate milk prices (FMP). What we’re seeing in FY24/25 is FMPs more closely aligned to market conditions as processors move to ensure Australian dairy products remain competitive locally and internationally. The last two years of record-high milk prices, led to an influx of international dairy products, resulting in unprecedented imports and high consumption of cheaper overseas alternatives. The data speaks for itself. In FY22/23, imports surged by 17 per cent, leading to the highest ever consumption of overseas dairy products in Australia – nearing 30 per cent, or 344,000 tonnes. Processor’s goal this season is two-fold. We want to ensure Aussie families can continue to enjoy affordable, locally made and branded milk, cheese, yoghurt, butter and ice cream in their homes and we want to keep factories operational, protecting jobs, and supporting farmers and local communities. To read more: https://lnkd.in/gD23iD-n John Williams Kristin Favaloro

Strong European "shoulder" season, expecting +5% YoY milk production in Eastern Europe with interesting dynamics of concentrate vs. drying. AMF dynamics: Chinese origin competing aggressively and demand flex (shifts or drops?). Product mix, mean reversion, freight dynamics and maybe an infection scare combine to justify the surprise WMP lift on GDT. Fonterra win market share battle for first month of the new dairying season. How the new planned assets could impact competition in NZ. All this and more (for free, just click, no sign-up): https://lnkd.in/gqZY6vEr #dairy #commodities #globaltrade