Organic Milk Price Shatters Records: $12.35 Payout Drives 27% Sales Surge
Sourse: dairynews.today
Fonterra's organic dairy farmers in New Zealand achieved a record $12.35 per kilogram of milk solids payout, fueling a 27% increase in sales due to strong demand in the US market.
Fonterra’s organic dairy farmers have reached a significant milestone with a record payout of $12.35/kg MS (milk solids), marking a continuous five-year increase and reflecting the strong demand from the US market. The cooperative's organic sales surged by 27% year-on-year, supported by a 7.5% rise in organic milk collections to 9.7 million kg MS. This trend underscores a robust market preference for premium, grass-fed, organic products originating from New Zealand.
Looking ahead, Fonterra projects an organic milk price range of $12 to $14 per kg MS for the 2025–2026 season, with a midpoint significantly higher than past records. This price increase offers stability and incentivizes farmers, with Fonterra encouraging conventional farmers to explore organic conversion, primarily across the North Island and Waikato region.
The sustained growth trajectory highlights Fonterra's strategic positioning within the global agribusiness sector, as it remains an essential supplier catering to the increasing appetite for organic products.
Looking ahead, Fonterra projects an organic milk price range of $12 to $14 per kg MS for the 2025–2026 season, with a midpoint significantly higher than past records. This price increase offers stability and incentivizes farmers, with Fonterra encouraging conventional farmers to explore organic conversion, primarily across the North Island and Waikato region.
The sustained growth trajectory highlights Fonterra's strategic positioning within the global agribusiness sector, as it remains an essential supplier catering to the increasing appetite for organic products.
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