The co-operative has increased the midpoint of the 2026/27 season forecast Farmgate Milk Price from NZ$9.50 per kgMS to $9.75 per kgMS. It has also lifted and narrowed the forecast range from $8.50 - $10.50 per kgMS to $9.00 - $10.50 per kgMS.
CEO Richard Allen said stronger demand for Whole Milk Powder (WMP) and Skim Milk Powder (SMP) had underpinned the forecast.
“Over the last two events, our WMP and SMP pricing on Global Dairy Trade has increased by about 5% and 7% respectively. This is driven by sustained demand from across Southeast Asia, Middle East, Africa and China,” he said.
“We have also had a good start to the season which sees our sales book well-contracted for this stage of the year, despite record milk collections, giving us confidence to lift and narrow the forecast range.
“There’s plenty more to do, and we are continuing to monitor factors that could affect global supply and demand for dairy.”
Fonterra also increased the Organic Milk Price, with the midpoint lifting from $14.30 per kgMS to $15.25 per kgMS, and the range moving from $13.30 - $15.30 per kgMS to $14.50 - $16.00 per kgMS.
“Our teams will leverage our scale and flexibility to adapt and make sure we’re capturing the most value for our farmers’ milk,” added Allen.
The announcement follows Fonterra’s recent commitment of NZ$31m over three years to the next phase of AgriZeroNZ, the public-private partnership working to find practical, affordable solutions to on-farm emissions.
The partnership brings together the Government and agribusiness organisations, including Fonterra, Synlait, the a2 Milk Company, Silver Fern Farms, ANZCO, Ravensdown, Alliance, Farmlands, Rabobank, ASB, ANZ and BNZ, to drive progress on reducing biogenic methane emissions.
More recently, Fonterra revealed that its Chief Financial Officer Andrew Murray has resigned to take up a role outside the business.
