Big range in Fonterra forecast Dairy Payout

On 23 May 2019 the Fonterra Board amended the 2018/19 season forecast Farmgate Milk Price  to $6.30-6.40 per kgMS and slightly increased the dividend range to 20-25 cents/share, bringing the total forecast cash payout to around $6.55 per kgMS – the  highest payout since 2014

The Co-op also announced a 2019/20 opening season forecast Farmgate Milk Price range of $6.25-7.250 per kgMS, This is the widest forecast range I can recall – but a bit better I guess than the $7.00 forecast this time last year, that then just proceeded to head south from then on.

Strong demand, the NZD/USD exchange rate, and current price signals – especially for milk fats were reasons given for the confidence to set the opening forecast at this level.

Meanwhile competitor Synlait has forecast $7.00/kg for next season

The graph below here tracks Payout (milk price +  share dividend) since 2000







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