Fonterra Australia has announced a forecast closing farmgate milk price for the 2018/19 season in the range of $5.50 to $6.20 per kilogram of milk solids.
This compares with this season's current forecast close of $5.62-$5.70/kg MS.
Fonterra's current average weighted price is $5.62/kg MS.
Farmers are also receiving an additional 40 cents/kg MS bonus, paid so Fonterra could fulfil the benchmark milk price agreement for the 2015/16 season.
This takes the current average weight price being received by farmers to $6.02/kg MS.
Fonterra said the 2018/19 closing range was based on market indications that showed a continued positive global supply and demand picture.
Demand was expected to remain strong – especially from China and for butter and anhydrous milk fat – and the global dairy market’s current prices were expected to continue throughout the new season.
Last year on May 11 Fonterra announced a forecast closing farmgate milk price of $5.30-$5.70/kg MS.
It revised that up to $5.50-$5.80/kg MS on July 28 before revising it down to $5.62-$5.70 on December 13.
Fonterra Australia managing director René Dedoncker said Fonterra remains committed to paying its farmers a price that is market-based, competitive, and sustainable.
“We are keeping to our promise to provide farmers with clear market-based signals in advance of the new season to allow them budget and plan," he said.
Mr Dedoncker said the company would announce its opening price in coming weeks.
Australian Consolidated Milk announced an opening price of $5.90/kg MS earlier this month.