Miraka Increases Milk Price Forecast Amid Rising Dairy Prices

Highlights:

• Revised Forecast: Miraka Limited (NZX: MIK) has raised its 2024/25 milk price forecast to $9.17 per kgMS, surpassing initial estimates and competitor forecasts from Fonterra and Synlait Milk.
• Global Price Increase: The latest Global Dairy Trade auction showed a 1.2% increase in dairy prices, reaching US$3,851 (approximately NZ$6,108) per metric tonne, primarily driven by rising whole milk powder demand.
• Market Competitiveness: Miraka's proactive adjustment to its milk price outlook highlights its adaptability in a fluctuating market, potentially strengthening its position against competitors in the dairy industry.

Taupō-based dairy processor Miraka Limited (NZX: MIK) has raised its forecast milk price for the 2024/25 season, now projecting a payout of $9.17 per kilogram of milk solids (kgMS). This revision follows an initial estimate of $8.42/kgMS and exceeds the forecasts set by competitors Fonterra and Synlait Milk, which stand at $9/kgMS and $8.60/kgMS, respectively.

Global Dairy Price Surge

At the latest Global Dairy Trade auction, global dairy prices increased by 1.2%, reaching US$3,851 (approximately NZ$6,108) per metric tonne. This uptick in prices was significantly influenced by whole milk powder, which constitutes half of the auction's volume and has the most substantial impact on pricing dynamics. The higher prices at auction reflect growing demand in international markets, contributing to Miraka’s optimistic outlook.

Competitive Edge in the Market

Miraka’s revised forecast positions the company favorably against its competitors, showcasing its ability to adapt to changing market conditions. With the dairy industry facing various challenges, including supply chain disruptions and fluctuating global demand, Miraka's proactive approach could enhance its market competitiveness.

As the 2024/25 dairy season approaches, industry stakeholders will be closely monitoring global trends that may further influence milk prices. At the time of writing, Miraka’s positive forecast is a hopeful sign for dairy farmers and the wider agricultural sector.

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