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

Winston's crusade

OPINION: A short-term sugar hit. That's what NZ First leader Winston Peters is calling the proposed sale of Fonterra's consumer and associated businesses.

Featured

Elite sheep dogs to go head-to-head at Ashburton A&P Show

A major feature of the Ashburton A&P Show, to be held on October 31 and November 1, will be the annual trans-Tasman Sheep Dog Trial test match, with the best heading dogs from both sides of the Tasman going head-to-head in two teams of four.

Safer Rides initiative boosts farm quad bike safety

According to a new report, the Safer Rides initiative, which offered farmers heavily discounted crush protection devices (CPDs) for quad bikes, has made a significant impact in raising awareness and action around farm vehicle safety.

Editorial: Farewell Jim

OPINION: In the past weeks, much has been said and written about one of New Zealand's greatest prime ministers, James Brendan Bolger, who died just a few months after his 90th birthday.

National

Tributes paid to Jim Bolger

Dignitaries from  all walks of life – the governor general,  politicians past and present, Maoridom- including the Maori Queen, church…

Machinery & Products

» Latest Print Issues Online

The Hound

Red faced

OPINION: The Greens have taken the high moral ground on the Palestine issue and been leading political agitators in related…

Cold comfort

One of the most galling aspects of the tariffs whacked on our farm exports to the US is the fact…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter