Photo / NZ HeraldFonterra has lifted the mid-point of a narrowed milk price forecast to $7.00 per kg of milk solids from the previous mid-point of $6.80, driven by demand out of China. The co-op also raised its first-quarter normalised earnings and kept to its 2020/21 earnings forecast of 20 to 35 cents per share. Fonterra's new milk price range is $6.70/kg to $7.30/kg, from a previous range of $6.30/kg to $7.30/kg. However, Hurrell said Fonterra had contracted a good proportion of its sales book for this time of the season, which gave it the confidence to narrow and lift the bottom end of the forecast farmgate milk price range. "However, there are still a number of risks we are keeping a close eye on and for this reason we have made the decision to maintain our current forecast earnings range," he said.

Source: New Zealand Herald December 03, 2020 19:58 UTC