Fonterra has reduced the midpoint estimate for the Farmgate Milk Price to $9.50 per kilogram of milk solids (kgMS), down from $10.
The revised range for the 2025/26 season reflects a decline in global price pressures.
“Fonterra started the season with a wide forecast range of $8.00-$11.00 per kgMS. The new midpoint of $9.50 per kgMS is in the middle of this range and remains a strong forecast for the season,” chief executive Miles Hurrell said.
The change was driven by strong milk production in New Zealand and other dairy-producing countries.
“This increase in milk supply has put downward pressure on global commodity prices, with seven consecutive price drops in recent Global Dairy Trade events,” he said.
“We continue to be focused on maximising returns for farmer shareholders through both the Farmgate Milk Price and earnings.”
“This includes building strong relationships with customers who value our products, utilising price risk management tools, and optimising our product mix.”
The cooperative also raised its milk collection forecast for the 2025/26 season by 20m kgMS, reaching 1,545m kgMS.