Economist with ASB Bank in New Zealand Nathan Penny said sources in the world’s largest dairy co-op have indicated an update on the forecast milk price and dividend payment will be made on Monday.

Although Fonterra has not confirmed this, the announcement by has come as a surprise to many. It was September last year before any announcement was made. Penny said the New Zealand co-op will also make an announcement on earnings per share and give a global dairy market update.

The present Fonterra milk price forecast stands at $4.25/kg milk solids (21c/l) and Penny does not expect any change from Monday’s update. WMP (whole milk prices) average prices of US $2,079 at the last GDT auction would generate just $3.71/kg before processing costs. This would need to be over US $3,000 before a breakeven milk price of $5.25/kg becomes attainable.

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