Fonterra Australia announce opening milk price

“The impact of COVID-19 on economies and the market is still largely unknown and we are seeing softening of demand relative to supply which is putting downward pressure on prices," he said.

“We anticipate that global dairy markets will be uncertain for some time. The global downturn is continuing to reduce consumers’ purchasing power while the foodservice industry remains impacted by restrictions in the tourism and the hospitality sectors.

“The last month has given some cause for optimism in the year ahead, with improvements in key product values. By the end of June, we’ll have more certainty on our next six-monthly product pricing, including key cheese export contracts. We will provide our farmers with an update on this by the end of June, including any resulting impact on our price forecast.

“Fonterra’s market-leading consumer brands and value-added ingredients portfolio are providing strong options to put milk into. Like our suppliers, we will be head down, doing the basics well and focusing on costs to secure the best margins."

For more information visit www.farmsource.com.au/pricing