Fonterra announced a strong opening milk price today, with a forecast Farmgate Milk Price of $7 per kgMS for the 2018/19 season.
Chairman John Wilson said in a statement they were seeing a "continued positive global supply and demand picture which gives us the confidence to increase our current forecast Farmgate Milk Price into the new season".
"Demand is expected to remain strong – especially from China and for butter and AMF. We are expecting the global dairy market's current prices, especially for fats, to continue throughout the new season."
Fonterra were also forecasting the New Zealand 2018/19 milk collections to rise 1.5 per cent on current forecasts for the season, "and we expect to see a lift in supply from the EU, US, Australia and Argentina".
The forecast earnings per share for 2019 will be announced in July.
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