What is Fonterra's revised milk price forecast for the 2026/27 season, and what key factors prompted the adjustment?

Fonterra revised its 2026/27 farmgate milk price forecast to NZ$8.00–NZ$10.50 per kilogram of milk solids (kgMS), down from NZ$8.00–NZ$11.00 per kgMS, citing 'softer-than-expected demand and robust global supply' as the primary drivers; specifically, Global Dairy Trade prices for reference products fell 11% since the opening forecast in late May, and milk production from key exporting regions is higher than last year.

How does Fonterra's outlook for the current 2025/26 season compare to its previous forecasts, and what does it indicate about recent stability?

Fonterra kept its 2025/26 season farmgate milk price forecast unchanged at NZ$9.60–NZ$9.80 per kgMS (mid-point NZ$9.70), following four revisions between August last year and May, indicating that the forecast has now stabilized after a period of frequent adjustments.

NZ's Fonterra trims top end of annual milk price forecast on weak demand

Jul 12, 2026

New Zealand dairy giant Fonterra lowered its 2026/27 farmgate milk price forecast to NZ$8.00–NZ$10.50 per kgMS citing weak global demand and high supply. The company maintained its current season forecast unchanged at NZ$9.60–NZ$9.80 per kgMS.

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NZ's Fonterra trims top end of annual milk price forecast on weak demand

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