NZ Milk Price Could Hit $10/kgMS as Global Supply Eases
A 'tsunami' of milk from key exporting countries is winding down and this may be good news for New Zealand dairy farmers.
By February, the North Island bull indicator had reached $9.65/kg CWT, an all-time high, and premiums on top, meaning some producers may be getting closer to $10/kg.
Rabobank animal proteins analyst Jen Corkran noted that farmgate beef pricing had held at record levels across the first two months of 2026, supported by strong offshore demand.
She says December 2025 saw the average export value for New Zealand beef reach $12.42/kg, another record, reflecting both a supportive currency at the time, and broad global demand."
ANZ agri economist Matt Dilly says beef prices continue to rise both at the farmgate and in-market.
With strong demand overseas and great pasture conditions, prices should easily hold through the end of 2025/26 and likely longer, says Dilly.
Corkran agrees that the NZ summer has so far delivered very favourable grass-growing conditions across the country.
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"This has enabled farmers to hold stock longer and add additional weight. While positive for productivity, this does contribute to localised procurement challenges at times, even as export demand holds firm," she says.
Corkran says New Zealand beef export volumes are expected to increase by 3-4% in 2026, in line with higher production.
