Fonterra has announced a new forecast payout for the new season in the range of $8.75 to $10.25/kg milk solids, with the mid-point increased by 50 cents to $9.50/kg. The company says its decision reflects continued constrained milk supply and the strength of the US dollar โ€“ the exchange currency for dairy transactions. CEO Miles Hurrell has warned of considerable volatility affecting its longer term outlook. โ€œA series of global events has changed some of our assumptions. โ€ฏโ€In particular, interest rates and inflation have lifted well above our assumptions, as have commodity prices in response to the continued strong demand for dairy. โ€œThese near-term headwinds have the potential to impact some of the co-opโ€™s targetsโ€.

This post was originally published on https://app.vespertool.com/vegetable-oil/news, written by Barry Wilsonโ€™s Dairy Industry Newsletter.