New Zealand exporter Fonterra forecasts historical high milk prices

New Zealand’s Fonterra, the world’s largest dairy exporter, signalled robust demand from China, Latin America, and Southeast Asia would keep milk product prices near historical highs in the coming season.

In a country where dairy exports account for a quarter of all exports, high milk prices and solid payouts to dairy farmers are a boon to economic growth and support the New Zealand dollar.

Fonterra’s payout to its farmer shareholders for the current season was finalised at NZ$8.40 (€5.24) per kilogramme of milk solids — the highest since the co-op was formed in 2001.