Discover how New Zealand’s Fonterra Co-operative is thriving, raising its 2024 earnings forecast amid strong dairy demand. Learn about the significant increase in farmgate milk prices to NZ$7.00-NZ$8.00/kg and a boosted earnings outlook, with a first-quarter profit surge of 61.7% reaching NZ$346 million.
Fonterra Boosts 2024 Earnings and Milk Price Forecasts Amid Surging Demand, Reports 61.7% Profit Jump
New Zealand’s Fonterra Co-operative has raised its fiscal 2024 earnings and farmgate milk price forecasts due to increased demand for dairy products, particularly from significant importers. The new farmgate milk price range is NZ$7.00 to NZ$8.00 per kilogram of milk solids, up from the previous NZ$6.50 to NZ$8.00. This change follows a rise in Global Dairy Trade prices. The company also boosted its 2024 earnings per share projection to between 50 and 65 NZ cents, anticipating a robust interim dividend.
Fonterra’s first-quarter profit soared by 61.7% to NZ$346 million, driven by higher margins in its main sales channels: ingredients, food service, and consumer products. CEO Miles Hurrell expects these margins to remain high in the first half of the year, with a tightening anticipated in the second half.
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About Fonterra Dairy
Fonterra Co-operative Group, a leading player in the global dairy industry based in New Zealand, is renowned for its financial achievements and strategic initiatives. Originating from a merger in the early 2000s, Fonterra has grown into one of the world’s largest dairy exporters. Central to its ethos are quality and sustainability, supported by a network of over 10,000 farmers who are not just suppliers but shareholders. Despite its global presence in over 140 countries, Fonterra maintains a keen understanding of local market nuances.
Innovation is key to its operations, with significant investments in research and development to stay ahead in the competitive dairy industry. While facing challenges such as market fluctuations and environmental concerns, Fonterra’s adaptability has been its strength.
Looking forward, the company aims to bolster sustainability, improve efficiency, and expand its global reach, continuing to be a leader in the dairy industry and a symbol of innovation, quality, and resilience.