Fonterra revises 2025/26 season farmgate milk price downwards

Fonterra Co-operative Group has provided an update on its forecast farmgate milk price (FMP) for the 2025/26 season. The co-op has adjusted the forecast range from NZ$9-$10 per kgMS to $8.50-$9.50 per kgMS with the midpoint changing from $9.50 per kgMS to $9 per kgMS.

CEO Miles Hurrell says, “With half the season still to complete, we continue to experience strong milk flows both in New Zealand and globally, particularly out of the United States and Europe, and this continues to put downward pressure on global commodity prices. Combined with a rising New Zealand dollar since the last milk price update in November, we are required to further adjust the forecast range for the season and lower our midpoint.

“We started the season with a wide forecast range of NZ$8-$11 per kgMS and the new midpoint of $9 per kgMS remains within that range.

“We remain committed to maximising returns for farmer shareholders through both the FMP and earnings, strong customer relationships and a firm focus on margins, product mix and operational efficiencies,” says Hurrell.