Fonterra business and milk suppliers look like they are having another good year. This week, the milk processor announced a nine-month update on the 2020/2021 accounting period.

For the nine months ending 30 April 2021, Fonterra delivered a normalised net profit after tax of €350m ($587m NZ), up 61% year-on-year, reflecting the co-op’s improving underlying business performance and stronger balance sheet. Reported net profit after tax was €359m ($603m), up 2%.

Fonterra’s total group normalised earnings before interest and tax (normalised EBIT) was up 18% to €572m ($959 m) due to higher margins and reduced operating expenditure.

Most New Zealand dairy farmers are on holidays now before calving starts ramping up in July and August. Most of last season’s product has been sold, so Fonterra is narrowing down the final milk price to farmers and it looks likely to finish at $7.55/kg MS, equivalent to 31c/l.