Fonterra Cuts Milk Price Forecast on Weak Global Market
- Global prices are `unsustainably' low, CEO Theo Spierings says
- Time frame for supply, demand rebalancing pushed further out
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Fonterra Cooperative Group Ltd., the world’s largest dairy exporter, cut its milk price forecast to a nine-year low as weak demand and oversupply continue to depress the global market.
The Auckland-based company dropped its estimate for the 2015-16 season to NZ$4.15 ($2.67) a kilogram of milksolids from NZ$4.60, according to a statement Thursday. It now expects to pay its 10,500 farmer suppliers between NZ$4.50 to NZ$4.55 a kilogram of milk solids inclusive of dividends.