New Zealand based dairy company Fonterra Shareholders' Fund (ASX: FSF) shares have been on a downward spiral in the last 12 months, dropping from $5.74 at this time last year to close off June 5 at $4.72.
But recent news out of the company could see things turn around
Fonterra yesterday released a global dairy update with increased forecast farmgate milk price for the 2017/2018 season to $6.75 per kgMS with an upgrade to 2018/2019 prices to $7.00 per kgMS.
Fonterra reported its dairy exports grew strongly in all regions with the US logging the highest monthly exports in four years, up 7%, the European Union up 6% and Australia and New Zealand rising 3% and 1% respectively.
Favourable seasonal conditions in Australia saw milk collection jump 26%, but import figures were down in Latin America and the Middle East and Africa.
The dairy space is a competitive one, with $594 million market cap company rivalling the likes of $7.29 billion market cap player A2 Milk Company Ltd (ASX: A2M).
As usual the baby formula sector continues to boom, with Bellamy's Australia Ltd (ASX: BAL) back on the up after a downtrend throughout March and Bubs Australia Ltd (ASX: BUB) shares up 1.2% to 82c per share at the time of writing after the announcement of a long-term supply agreement with China-based New Times Asia.