Fonterra Increases 2025/26 Milk Price Forecast Amid Global Recovery

Fonterra, New Zealand's leading dairy cooperative, has announced an increase in its forecast for the 2025/26 farmgate milk price to NZ$9.50 per kilogram of milk solids (kgMS). This adjustment comes as part of a response to a recovery in global dairy prices, which has influenced the cooperative's decision to refine its price range and reaffirm its earnings guidance.

The revised forecast is a significant indicator of improving conditions in the global dairy market, which had previously experienced volatility. Fonterra's Chief Executive, Miles Hurrell, noted that the adjustment is a reflection of the cooperative's confidence in the market's recovery and its ability to navigate the complexities of international trade dynamics.

Fonterra's decision to adjust the forecast is also aligned with its strategic focus on sustaining earnings and ensuring stability for its farmer shareholders. By honing in on a more precise price range, the cooperative aims to provide better financial predictability for its members amidst fluctuating global economic conditions.

In addition to the price forecast, Fonterra has maintained its earnings guidance, which underscores its commitment to financial resilience and sustainability. This commitment is crucial for fostering trust and assurance among its stakeholders as the cooperative continues to adapt to the evolving global dairy landscape.

The announcement has been welcomed by industry analysts, who view it as a positive signal of market stabilization and a testament to Fonterra's strategic management in a challenging economic environment.