Fonterra Lifts FY25 Forecast Farmgate Milk Price And Narrows FY26 Range

Fonterra Co-operative Group Ltd announced an increase in its 2024/25 season forecast Farmgate Milk Price, lifting it from $10.00 per kgMS to $10.15 per kgMS. At the same time, the forecast range has been narrowed from $9.70–$10.30 per kgMS to $10.10–$10.20 per kgMS.

Chief Executive Miles Hurrell commented:
“As we close out FY25, I’m pleased that we are in a position to raise the forecast for the 2024/25 season by 15 cents.

“We started the season with a broad forecast range to reflect potential volatility in commodity prices and currency markets, given the global geopolitical environment.

“Since then, Global Dairy Trade prices have remained steady, and combined with our well-contracted sales book, we’ve been able to lift the forecast Farmgate Milk Price during the season,” Mr Hurrell said.

The final Farmgate Milk Price for 2024/25 will be confirmed in September when Fonterra releases its FY25 annual results.

Looking ahead, the Co-op has maintained its forecast for the 2025/26 season at $10.00 per kgMS, while narrowing the range from $8.00–$11.00 per kgMS to $9.00–$11.00 per kgMS.

“Global Dairy Trade prices remain strong, which underpins the $10.00 per kgMS midpoint for the current season. That said, it’s still early days, and the risk of volatility persists — which is why the forecast range remains wide,” Mr Hurrell noted.

Fonterra’s FY25 forecast earnings guidance remains unchanged at 65–75 cents per share.