Fonterra Delivers Record $15.3B to NZ Dairy Farmers
Sourse: en.edairynews.com
Fonterra has reported a record Farmgate Milk Price of $10.16 per kilogram of milk solids for the 2024/25 season, resulting in $15.3 billion in milk payments to New Zealand farmers, an increase of $3.8 billion compared to the previous season.
The cooperative collected 1,509 million kilograms of milk solids with a 2.6% increase in volumes, generating a total revenue of $26 billion and record cash returns of $16.2 billion to shareholders. According to CEO Miles Hurrell, FY25 has been “one of the Co-op’s strongest years yet in terms of shareholder returns,” attributed to sustained global demand for high-quality New Zealand dairy products. Fonterra’s operating profit surged 13% to $1.73 billion, with a fully imputed dividend of 57 cents per share, returning $916 million to shareholders and unit holders.
The cooperative plans a $4.22 billion sale of its global Consumer and associated businesses to Lactalis, aiming to focus on high-margin ingredients and foodservice operations. This transaction is expected to generate a capital return of $2.00 per share, equivalent to $3.2 billion, upon regulatory and shareholder approval on October 30, 2025. Looking ahead, Fonterra anticipates milk collections of 1,525 million kilograms of milk solids for the 2025/26 season, with a Farmgate Milk Price forecasted at a midpoint of $10.00 per kilogram within a $9.00-$11.00 range. The cooperative continues to invest in major capital improvements including protein expansion at Studholme and new cream production at Edendale, ensuring competitive advantages in global dairy markets.
The cooperative plans a $4.22 billion sale of its global Consumer and associated businesses to Lactalis, aiming to focus on high-margin ingredients and foodservice operations. This transaction is expected to generate a capital return of $2.00 per share, equivalent to $3.2 billion, upon regulatory and shareholder approval on October 30, 2025. Looking ahead, Fonterra anticipates milk collections of 1,525 million kilograms of milk solids for the 2025/26 season, with a Farmgate Milk Price forecasted at a midpoint of $10.00 per kilogram within a $9.00-$11.00 range. The cooperative continues to invest in major capital improvements including protein expansion at Studholme and new cream production at Edendale, ensuring competitive advantages in global dairy markets.
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