Fonterra Co-operative Group Ltd has increased its 2024/25 season forecast farmgate milk price.

The announcement which came yesterday (Wednesday, August 20) saw the New Zealand milk processor elevate its forecast from NZ$10.00/kilogram of milk solids (kgMS) to $10.15/kgMS.

As a result, the co-operative's range has narrowed from $9.70-$10.30/kgMS to $10.10-$10.20/kgMS.

Fonterra chief executive Miles Hurrell said he is pleased to be in aposition to increase the forecast by 15 cents (NZ$).

Hurrell said: “We began the season with a wide forecast range to account for potential volatility in commodity prices and exchange rates resulting from geopolitical dynamics.

Despite the strong global dairy trade prices, the CEO added: “It’s still early in the season and the risk of volatility remains, which is reflected in the wide forecast range."

Fonterra confirmed that they will release the final farmgate milk price for the 2024/25 season this September.

The New Zealand-based dairy processor will announce its FY25 annual results at the same time

Meanwhile, the co-operative announced that it has also retained the $10.00/kgMS forecast for the current 2025/26 season and narrowed the range from $8.00-$11.00/kgMS to $9.00-$11.00/kgMS.

Fonterra added that its FY25 forecast earnings of 65-75 cents per share remain unchanged.

In June, Fonterra announced a profit after tax of $1.158 billion in the third quarter (Q3) of 2025, up NZ$119 million or 11% on the same time to the previous year (2024).

At the time, this led to the dairy processor narrowing its year-end earnings range to from the 55-75 cents per share figure provided in March, to the current 65-75 cents per share figure.

Commenting in June on these changes, Hurrell said: “We’ve delivered strong shareholder returns through the 2025 financial year (FY25), including a 22-cent interim dividend, and as we get closer to the end of the year, we are focused on maintaining this momentum."