April’s FMP Proves Popular at $9.60

In a significant development for New Zealand's dairy sector, over 500 farmers participated in Fonterra's April Fixed Milk Price (FMP) offering, securing a price of $9.60 per kg of milksolids for a portion of their 2026 production. The initiative was so popular that it was oversubscribed, with 547 applications totaling 27.4 million kg, surpassing the original offer of 25 million kg. Fonterra's rules allowed for a 10% oversubscription, fully accommodating the demand.

Fonterra's milk supply director, Lisa Payne, noted the increasing popularity of the FMP scheme, especially among new farmers. She highlighted the need for revenue certainty, particularly for farmers early in their careers. "We have offered FMP contracts since 2019, as we know some of our farmers want the option of having greater certainty for a portion of their revenue," Payne said. The service has seen growing participation since its inception.

The previous month marked the first offer of the new season, where almost 300 farmers applied for nearly 15 million kg at a net price of $9.53, all of which was contracted. The FMP initiative allows Fonterra to provide price risk management solutions to key customers, with benefits flowing back to shareholders in the form of dividends.