(Adds company comment, background on China’s yuan, market details)
Sept 4 (Reuters) - Fonterra , the world’s biggest dairy exporter, said on Wednesday the weaker Chinese yuan is hurting consumer purchasing power for its U.S. dollar-priced dairy products.
New Zealand’s Fonterra, however, maintained its current farmgate milk price forecast of NZ$6.25 to NZ$7.25 ($4.00 - $4.64) per kg of milk solids for 2019/2020 but said risks remain for the global dairy market.
“The weakening Chinese currency means less consumer purchasing power for USD-priced dairy products like ours,” Fonterra, which is set to report its worst annual loss next week, said in a statement.
In August, China’s yuan suffered its sharpest monthly drop in 25 years as the protracted U.S.-China trade war intensified.
“We are keeping a close eye on international trade tensions and geopolitical risks,” the company added.
China is an important market for dairy products, with many companies increasing their spending on marketing to attract more Chinese consumers. ($1 = 1.5620 New Zealand dollars) (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by David Gregorio and Matthew Lewis)