Fonterra lowers 2025/26 farmgate milk price forecast

Fonterra Co-operative Group Ltd announced an update to its 2025/26 season Farmgate Milk Price forecast, revising the range from $9.00-$10.00 per kgMS to $8.50-$9.50 per kgMS. This adjustment shifts the midpoint from $9.50 per kgMS to $9.00 per kgMS.

chief executive Miles Hurrell attributed the change to strong milk flows in New Zealand and globally, particularly from the United States and Europe, which continues to exert downward pressure on global commodity prices. A rising New Zealand dollar since the November update also contributed to the revised forecast.

Despite the revision, the new midpoint of $9.00 per kgMS remains within the initial season forecast range of $8.00-$11.00 per kgMS. Fonterra stated its commitment to maximizing returns for farmer shareholders through the Farmgate Milk Price, earnings, strong customer relationships, and a focus on margins, product mix, and operational efficiencies.