New Zealand dairy co-op Fonterra is maintaining its forecasted milk price range for 2020 between $7/kg and $7.60/kg of milk solids (MS), which equates to a range of between 28c/l and 30c/l.

However, Fonterra warned that the unfolding impact the coronavirus is having on the global economy could yet impact the co-ops full year performance. Weather is also very dry in New Zealand, which is reducing milk production.

As a result, Fonterra has decided not to pay a half year cash dividend to its farmers and said it will reassess its financial position in July.