WELLINGTON, Oct. 22 (Xinhua) -- New Zealand's Fonterra Co-operative Group Limited on Tuesday increased its 2019-2020 forecast Farmgate Milk Price range from 6.25-7.25 NZ dollars (4.65 U.S. dollars) per kgMS (Milksolids) to 6.55-7.55 NZ dollars per kgMS.
The Advance Rate Fonterra pays its farmer owners will be set off the mid-point, 7.05 NZ dollars per kgMS, of the revised range, said a Fonterra statement.
Fonterra Chairman John Monaghan said the co-op had been achieving good prices for its milk so far this season.
"Demand for whole milk powder (WMP) has been firm, and for the full season we're expecting it to be above last year. Global WMP production is down year to date and expected to continue to decrease for the remainder of 2019," he said.
"We are also continuing to sell our skim milk powder at higher prices than EU and U.S. dairy companies in Global Dairy Trade (GDT) Events," he added.
Fonterra CEO Miles Hurrell said the strong demand for the co-op's milk and the prices that are being achieved, relative to other milk producing regions, demonstrated the rationale of Fonterra's new strategy to prioritize New Zealand milk.
