increase font size
Fonteerra chief executive Richard Allen.
Fonterra has reduced its forecast 2026/27 Farmgate Milk Price.
The announcement comes off the back of declining prices at recent Global Dairy Trade (GDT) auctions.
The revised forecast is $9.25/kgMS, with a new range of $8 - $10.50/kgMS.
This is down from the opening forecast of $9.75 per kgMS announced in May, when the Co-operative started with a wide range of $8.00 - $11.00 per kgMS to reflect the potential for volatility and varied outcomes throughout the season.
Richard Allen, chief executive of Fonterra, says the change to the 2026/27 forecast reflects softer-than-expected demand at a time of strong global supply.
“GDT prices have fallen 11% across the reference products that inform the Farmgate Milk Price since we announced the opening forecast in late May, while milk production from key exporting regions is up on last year. We’re expecting a strong start to the season in New Zealand, noting the potential for the El Niño weather pattern to impact global supply as the season progresses,” says Allen.
“It’s very early days in terms of the proportion of our FY27 sales book that has been contracted, so we face significant exposure to changes in commodity prices.”
Allen says the Co-operative continues to focus on maximising returns for its farmer shareholders.
“As the seasonal supply picks up, our plan will ensure we utilise our flexible operations footprint, strong customer relationships and robust supply chain to shift milk into the products and markets where we can get the best returns for our farmers’ milk.”
The 2025/26 forecast Farmgate Milk Price of $9.60 - $9.80 per kgMS, with a mid-point of $9.70, remains unchanged.
Signing up to a benchmarking tool is not about competition, but about improving collectively, says Ximena Puig and Alvaro Luzardo who are 50-50 sharemilkers at a 164-hectare (effective) dairy farm in Eketāhuna in the Lower North Island.
OPINION: With 10,500 dairy farms, New Zealand continues to punch above its weight around the world.
A team effort that is paying dividends for the wider New Zealand economy.
The country's second largest milk processor is warning against 'complacency' during a review of competition regulations in the dairy sector.
Canterbury farmer Andy Macfarlane has been appointed to the board of AgriZeroNZ, the public-private partnership designed to accelerate the development and deployment of emissions reduction tools for New Zealand farmers.
Potatoes New Zealand has congratulated Peter Reynolds of TA Reynolds Ltd in Pukekohe on being awarded the Horticulture New Zealand Bledisloe Cup, recognising a lifetime of service and contribution to New Zealand horticulture.
Signing up to a benchmarking tool is not about competition, but about improving collectively, says Ximena Puig and Alvaro Luzardo who are 50-50 sharemilkers at a 164-hectare (effective) dairy farm in Eketāhuna in the Lower North Island.
A leading British farming politician says he's impressed with the positive attitude of New Zealand farmers that he met during his recent trip here.
OPINION: With 10,500 dairy farms, New Zealand continues to punch above its weight around the world.
The Southern Dairy Hub (SDH), which runs a demonstration farm for South Island farmers, has a new general manager.
Esther Guy-Meakin has been announced as the new chief executive of the New Zealand Meat Board (NZMB).
OPINION: The Irish dairy sector is facing a new dilemma - maintaining year-round fresh milk supplies.
OPINION: Could beef cows play an increasingly important role in improving profitability and resilience on hill country farms?
