Fonterra lifts milk price forecast to $10.15/kgMS

The forecast Milk Price range has also narrowed from $9.70 - $10.30/kgMS to $10.10 - $10.20/kgMS.

Miles Hurrell, Fonterra chief executive, says that as the co-operative closes out the 2025 financial year, he's pleased to increase the forecast for the 2024/25 season by 15 cents.

"We began the season with a wide forecast range to account for potential volatility in commodity prices and exchange rates resulting from geopolitical dynamics," Hurrell says.

"However, Global Dairy Trade prices have remained stable, and when coupled with our well contracted sales book, we have been able to increase our Farmgate Milk Price across the season," he says.

Fonterra has also retained the $10.00 per kgMS forecast for the current 2025/26 season and narrowed the range from $8.00 - $11.00 per kgMS to $9.00 - $11.00 per kgMS.

“Global Dairy Trade prices continue to be strong, supporting the $10.00 per kgMS forecast midpoint for the current season.

Read More:

• BNZ lifts milk price forecast to $10.25/kgMS for 2025-26
• Why is butter so expensive in New Zealand? Fonterra explains
• NZ milk production surges 17.8% at start of 2025/26 dairy season

“However, it’s still early in the season and the risk of volatility remains, which is reflected in the wide forecast range,” says Hurrell.

Fonterra's FY25 forecast earnings of 65-75 cents per share remains unchanged.

The co-operative will confirm its final Farmgate Milk Price for the 2024/25 season with its FY25 annual results in September.