Westpac has lifted its 2020/21 farmgate milk price forecast by 50 cents to $7.50/kg – 20c above the upper end of Fonterra’s forecast range. A $7.50/kg milk price would be one of the highest in the co-op’s 20-year history. Westpac has increased its 2021/22 milk price forecast by 25 cents to $7.25/kg.
The price increase is driven by an even greater demand for milk products in China. Unlike most of the rest of the world, the Chinese economy grew in 2020. Household incomes also continued to grow, especially in China’s inland provinces.
