New Zealand dairy group Fonterra is confident of its revenues in the coming season, but at the same time quite conservative. In the 2024/2025 campaign starting in early June, the company expects the average milk price to range from NZ$7.25 to NZ$8.75 (NZ$1 = PLN 2,452, NBP 2024-06-10) per kilogram of dry milk solids.
A conservative estimate
The average range of €4.55 is therefore above the €4.45 estimated for 2023/2024, but well below the 2021/2022 season record of €5.27 per kilogram of milk solids. By mid-month, analysts were predicting a starting price for the new campaign well above NZ$8.00.
Given the early point of the season, the uncertain outlook and the ongoing risk of price volatility on global markets, we enter the season with a cautious attitude, said Miles Hurrell, CEO of Fonterra, on the first milk price forecast for 2024/2025. Supply and demand for dairy products remain very balanced, and Chinese import volumes have not yet returned to historic levels.
Profit of EUR 932 million in the third quarter of the 2023/2024 season
For the third quarter of the 2023/24 season, which ended at the end of April, Fonterra recorded profit after tax from continuing operations in the amount of the equivalent of EUR 932 million, which means a moderate improvement of 2%. The company estimated earnings before interest and taxes (EBIT) at EUR 1.32 billion, which means a deterioration of 6%.
Hurrell reported that the food service and consumer sectors in particular had a strong third quarter. In the quarter under review, the company's total sales volume increased by 38,000 tons, or 1%. Every year. We enter the end of the year with a strong balance sheet,” Hurrell said.