New Zealand dairy giant Fonterra (FCG.NZ), opens new tab on Monday trimmed the top end of its milk price forecast for the 2026/27 season as softer-than-expected demand and robust global supply drag down prices.
The dairy producer cut the annual forecast for the farmgate milk price — the price it pays to farmers for milk — to NZ$8.00 to NZ$10.50 per kilogram of milk solids (kgMS) from NZ$8.00 to NZ$11.00 per kgMS.
Make sense of global markets with the Trading Day newsletter. Sign up here.
“Global Dairy Trade prices have fallen 11% across the reference products that inform the farmgate milk price since we announced the opening forecast in late May, while milk production from key exporting regions is up on last year, Fonterra said.
The company forecasts a robust start to New Zealand’s season, though El Nino looms as a wildcard for global dairy supplies.
Fonterra kept the 2025/26 season forecast unchanged at NZ$9.60 – NZ$9.80 per kgMS, with a mid-point of NZ$9.70, following four revisions between August last year and May.
Reporting by Jasmeen Ara Shaikh in Bengaluru; Editing by Nia Williams and Andrea Ricci
Our Standards: The Thomson Reuters Trust Principles.
