Westpac has lifted its 2020-21 farmgate milk price forecast by 50 cents to $7.50/kg — 20c above the upper end of Fonterra’s forecast range. If it happens, a $7.50/kg milk price would be one of the highest in the co-operative’s 20-year history. In addition, Westpac has increased its 2021-22 milk price forecast by 25 cents to $7.25/kg. Most economists have forecast a $7.00/kg milk price for the current season but have said a stronger New Zealand dollar could weigh on the season-ahead milk price. Fonterra’s farmgate milk price has exceeded $7.00/kg only four times in the co-operative’s 20-year history.

Source: Otago Daily Times January 26, 2021 15:33 UTC