Fonterra raises 2026/27 farmgate milk price forecast

Fonterra Co-operative Group has revised its forecast for the farmgate milk price that it expects to pay during the 2026/27 season. The midpoint is now NZ$9.50 (€4.74) per kgMS, compared with the previous estimate of NZ$9.25 (€4.61) per kgMS.

The co-operative also adjusted the boundaries of its forecast. The earlier range of NZ$8.00-NZ$10.50 per kgMS has been replaced by a narrower range of NZ$8.50-NZ$10.50 per kgMS. The upper end remains unchanged while the lower end has increased.

Fonterra said the revision reflected recent gains in international dairy commodity prices. Results from Global Dairy Trade auctions have improved since the company’s previous update in July, with whole milk powder and skim milk powder among the products showing stronger results.

Richard Allen, Fonterra’s chief executive, said the higher midpoint was supported by those commodity-market developments. He also said demand remained strong globally and linked the improving outlook to continued execution across the group’s business-to-business operations.

Allen said the company was retaining a cautious approach to the season. He noted that geopolitical volatility persisted and that only two months of the season had been completed. He also said previous seasons had shown that conditions could change during the year.