Fonterra Co-operative Group raised its FY24 earnings and Farmgate Milk Price forecast after a robust first quarter.

The new Farmgate Milk Price midpoint for the 2023/24 season has been set at $7.50 per kgMS, a rise of 25 cents. The increase has been driven by strengthening global demand, notably from China.

The Co-op's first quarter earnings surged, with profit after tax up 85% to $392 million, excluding the impact of selling DPA Brazil.

The company's forecast earnings range increased by 5 cents per share, from 45 to 60 cents per share to 50 to 65 cents per share due to improved performance across their sales channels.