Fonterra narrows farmgate milk price forecast
One of the world's largest dairy co-operatives and processors, New Zealand-based Fonterra, has provided an update on its forecasted farmgate milk price for the 2025/2026 season.
The dairy business has said it has narrowed its forecasted farmer price range from NZ$9-$11 per kilogramme of milk solids (kgMS) to NZ$9-$10/kgMS.
This means the midpoint of the forecasted range drops from NZ$10/kgMS to NZ$9.50kgMS.
The co-op has also increased its forecasted milk collections for the 2025/26 season from 1.525 billion kgMS to 1.545 billion kgMS.
Fonterra CEO Miles Hurrell said that there has been "strong milk flows this season", both in New Zealand and in other milk producing nations.
"The increase in milk supply has put downward pressure on global commodity prices, with seven consecutive price drops in recent Global Dairy Trade (GDT) events," Hurrell added.
"As a result, we have narrowed the forecast farmgate milk price range for the season and adjusted our midpoint.
"Fonterra started the season with a wide forecast range of $8.00-$11.00/kgMS. The new midpoint of $9.50/kgMS is in the middle of this range and remains a strong forecast for the season," Hurrell said.
He added: "We continue to be focused on maximising returns for farmer shareholders through both the farmgate milk price and earnings.
"This includes through building strong relationships with customers who value our products, utilising price risk management tools, and optimising our product mix," the Fonterra CEO commented.
Fonterra young farmer programme
In other recent news coming from the New Zealand dairy business, the co-op has launched a new two-year programme aiming to support young people to enter the dairy industry in the country.
The programme is being delivered in partnership with Growing Future Farmers (GFF), a charitable trust in New Zealand providing a hybrid vocational training model.
The initiative, co-designed by Fonterra, will begin with a pilot for young people aged 16-20 in Waikato and Bay of Plenty areas, starting in early 2026.
Students will gain practical on-farm experience provided by Fonterra farmer trainers and achieve a qualification accredited by the New Zealand Qualifications Authority (NZQA).
