According to Reuters, Fonterra The New Zealand dairy company said on Thursday it is likely to pay a higher price to farmers for its milk supply for the next fiscal year, courtesy of a surge in dairy demand and an appreciating US dollar.
“The world’s largest dairy exporter expects to pay NZ$8.75-10.25 (US$5.49-6.43) per kilogram of solid milk (kgMS) in fiscal year 2022-2023, up from a previous forecast of US$8.25-9.75. New Zealanders per kgMS,” Reuters noted.
Fonterra Chief Executive Miles Hurrell said: “Commodity prices have soared in response to continued strong demand for dairy products, contributing to the prospect of higher prices.” He added that world interest rates and inflation rose well above the company’s previous projections.
The NZD/USD was unaffected by the news and trades at 0.6250/60 on Thursday, falling for the second day in a row and close to this year’s lows.
Source: Fx Street