Shares of New Zealand’s Fonterra Co-Operative Group see a drastic decline of as much as 16.7%, taking the value down to NZ$2.7.
This might set a record for the worst percentage loss for the dairy company.
Following a second cut to its forecast for farmgate milk prices this month, instigated by global dairy industry weaknesses, Fonterra has ended up in this financial predicament.
The company now anticipates to pay NZ$6.00 to NZ$7.50 per kilogram of milk solid (kgMS) for the 2023-2024 season, a fall from its previous forecast which ranged between NZ$6.25 and NZ$7.75 per kgMS.
The declined demand from principal importing regions for whole milk powder has been affecting the prices negatively, states Fonterra CEO Miles Hurrell.
The stock has come down to its lowest point since March 16th, but even so, it is still up by 21.6% compared to the start of the year.
Fonterra Co-Operative Group is a New Zealand multinational dairy co-operative owned by around 10,500 New Zealand farmers.