On October 9th, Fonterra Co-Operative Group (ASX:FCG) announced that growth in milk output across key export countries is anticipated to be below average for the fiscal year 2024.

The agricultural cooperative also increased the forecast range for the 2023/24 season’s Farmgate price of milk to NZ$6.50 - NZ$8.00 per kilogram of milk solids, with a new median price of NZ$7.25 per kilogram of milk solids.

Moreover, the El Niño weather pattern could further impact supplies, a factor which could be influencing recent buyer sentiments.

Fonterra is a global dairy company that processes and markets dairy products.