World dairy prices probably at peak

NEW ZEALAND - Fonterra's chairman believes world dairy prices have probably reached their peak.
calendar icon 7 May 2007
clock icon 1 minute read
The dairy cooperative has lifted its forecast payout for this season by 20 cents, from $4.15 to $4.35 per kg of milk solids as the commodities boom continues. Milk powders have risen by 30% in the past six weeks.

The increased payout equates to an extra $20,000 for the average dairy farmer.

Fonterra has already indicated next season's payout would be around $5/kg if current exchange rates hold.

However, Fonterra chairman Henry van der Heyden says the picture beyond 2008 will probably be different. He warns that continuing high dairy commodity prices will reduce the profit from Fonterra's value added business, which will contribute 51c of this season's $4.35 payout.

Fonterra will announce its opening forecast for the 2007/08 payout later this month.

Source: Radio New Zealand
© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.