Tuesday, 03 June 2025 08:55

Record $10/kgMS milk price forecast means extra cash for Fonterra farmers

Written by  Staff Reporters
Federated Farmers dairy chair Richard McIntyre. Federated Farmers dairy chair Richard McIntyre.

A record $10/kgMS opening forecast milk price for the new season means more money into Fonterra farmers pockets early, says Federated Farmers dairy chair Richard McIntyre.

The co-operative last week announced a wide range forecast of $8 to $11/kgMS for the 2025-26 season, which kicked off June 1. However, Fonterra has settled for a forecast price above the midpoint of the forecast range.

Based on the $10/kgMS forecast, Fonterra farmers will get an advance rate of $7.50/kgMS for the first four months of the new season rising to $8.40/kgMS by May next year.

McIntyre told Rural News that the high advance rate would mean more money into farmers' pockets.

"This would improve cash flows; help farmers reduce bank debt and invest into farm machinery and maintenance," he says.

McIntyre says the record opening forecast milk price is also good news for the rural community.

"When dairy farmers do well, the benefits flow to the local communities and businesses."

Fonterra chief executive Miles Hurrell says they expect demand to continue for now but acknowledged the ongoing geopolitical uncertainty and the potential for a wider series of outcomes across the season.

Fonterra also reaffirmed a milk price of $10/kgMS for the season that's just ended.

More like this

A great outcome - Hurrell

Fonterra chief executive Miles Hurrell says the sale of the co-op’s consumer and associated businesses to Lactalis represents a great outcome for the co-op.

Featured

National

Machinery & Products

A reliable, no-fuss workhorse

Showcased with a T7.245 at the recent National Fieldays, New Holland has expanded its T7 tractor range offering in New…

» Latest Print Issues Online

The Hound

Faking it

OPINION: Demand for red meat is booming, while it seems the heyday of plant-based protein is well past its 'best…

M.I.A.

OPINION: The previous government spent too much during the Covid-19 pandemic, despite warnings from officials, according to a briefing released…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter