Fonterra lifts milk price forecast, sells consumer business to Lactalis for $4.22bn

Fonterra has announced a lift in its FY25 Forecast Farmgate Milk Price to NZD 10.10 - NZD 10.20 per kgMS, narrowing the range from the previous NZD 9.70 - NZD 10.30 per kgMS. The company also retained its FY26 forecast midpoint of NZD 10.00 per kgMS, narrowing the range to NZD 9.00 - NZD 11.00 per kgMS from NZD 8.00 - NZD 11.00 per kgMS. Additionally, the forecast range for certified organic milk for FY25 has been raised to NZD 12.30 - NZD 12.40 per kgMS, and for FY26 to NZD 12.00 - NZD 14.00 per kgMS.

The co-operative has agreed to sell its Consumer and associated businesses to Lactalis for USD 4.22 billion, which includes USD 375 million for the Bega licences. This sale, subject to shareholder and regulatory approvals, is expected to be complete in the first half of the 2026 calendar year, with Fonterra targeting a tax-free capital return of NZD 2.00 per share.

In July 2025, New Zealand milk production increased by 0.9% compared to July 2024, with season-to-date collections up 7.0%. Australia’s collections in July also saw a 0.9% increase. Global dairy trade results for August 19, 2025, showed Fonterra's weighted average product price at USD 4,332, with a 0.0% change from the previous event, and a total of 33,722 MT sold on GDT.