# Fonterra lowers milk price forecast and considers Tip Top offload

> Fonterra cut its 2018/19 farmgate milk price forecast to NZ$6.00-6.30 per kgMS from NZ$6.25-6.50 because global milk supply remains strong relative to demand. The co-op is also weighing a sale of its Tip Top ice cream business as it works to reduce debt, and it warned of a possible abnormal El Niño this summer.

- Date: 2018-12-06 · published 2018-12-06T12:00:00.000Z
- Category: market · region Global · magnitude medium
- Page: https://feedsoft.ai/events/5425-fonterra-lowers-milk-price-forecast-and-considers-tip-top-offload
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Persistent global milk oversupply keeps dairy product prices soft, while a possible El Niño could hit New Zealand output later in the season.

## Read by commodity

- MILK: bearish ▼

## Sources

- dairyreporter.com: https://www.dairyreporter.com/Article/2018/12/06/Fonterra-lowers-milk-price-forecast-and-considers-Tip-Top-offload/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.