Jamie Mackay: The Country host on Fonterra lifting the farmgate milk price forecast to $10.15/kgMS

Fonterra has increased its farmgate milk price forecast for the 2024/25 season to $10.15 per kg of milksolids from $10.00/kg, and has narrowed its forecast range for the current season.

The forecast range for 2024/25 has narrowed from $9.70-$10.30 per kilo of milk solids (kgMS) to $10.10-$10.20/kgMS, with the final price to be released alongside the co-op’s final result, due in September.

The Country's Jamie Mackay explains further.

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Episode Transcript

Speaker 1 (00:01):
The Rural report on Heather Duper see Allan Drive Hi
host of the Countries with US. Hello, Jamie good A
Heather So. Fonterra has raised the farm bakeer if armgate
and milk price forecasts, have they? Yeah, well it's the
forecast for the season just finished. So this morning a
couple of good news stories from Fonterra and Zesper in
the past couple of days. Sorry for the background noise

(00:23):
on parked at Auckland Airport trying to find a quiet spot,
which isn't that easy at the moment. So yeah, for
the season just finished twenty four to twenty five, they've
moved that midpoint to ten dollars fifteen. The range is
now ten dollars ten to ten dollars twenty so that's
locked and loaded. That is baked. And perhaps of more
interest was the number for the twenty five twenty sixth season,

(00:46):
which we've just entered into. They've narrowed that range because
remember they had a huge range from eight dollars to
eleven dollars and the midpoint that wasn't in the middle
because mid the midpoint was ten dollars. Now they've narrowed
that band down to nine to eleven dollars. The midpoint
is smaking the middle at ten. They're still forecasting ten.
That's a great result. Are the forecast earnings of sixty

(01:09):
five to seventy five cents per share remain unchanged and
that is the money in which the Fonterra Farmer shareholders
get their dividend, and I'm reckoning it could be anything
as high as fifty cents per share, Heather, which makes
it a pretty good yielder. Yeah, brilliant. They deserve it.
What about Zespriy that's looking great, isn't it. Yeah. Yeah,
I'm going to be broadcasting from Talonga tomorrow, Heather, so

(01:32):
I'll be catching up with Jason to break the CEO
for Zesprey. They've come out with the strong full first forecast,
get it right for the twenty five to twenty sixth season.
Everything is looking at record returns with the exception of
Sun Golden Organic Green and they're within the forecast range.
So the Kiwi fruit industry is on a real high. Now.

(01:56):
Their next job is to fulfill their next ten year
plan because their previous ten year plan, Heather, was to
target four point five billion in sales by twenty twenty five.
They've done that and if I just scroll down my
page here, excuse me what for the delay? Their next
ambition or their next ten year plan will be focused

(02:18):
on being the world's world's healthiest fruit brand, and I
see no reason why they can't do that. Heather, Kiwi
fruit is the superfood. Thank you, Jamie, as always appreciated.
Good luck with your flight. That's Jamie McKay, host to
the Country. For more from Heather Duplessy Allen Drave, listen
live to news talks it'd be from four pm weekdays,

(02:38):
or follow the podcast on iHeartRadio.