New Zealand’s dairy giant, Fonterra, in a statement to NZ stock exchange, forecasted the 2018-19 milk price at NZD 6.30-6.40 per kg of milk solids versus the prior forecast was NZD 6.30-6.60.
Forecast financial year 2019 earnings per share to 10-15 cents vs. 15-25 cents previously.
The company cited the following reasons for the downward revision:
Recovery in key markets slower than expected.
Tightening price relativities between non-reference and reference products.
On-going challenges in Australia.