Fonterra lowers 2026/27 New Zealand farmgate milk price forecast

Fonterra Co‑operatives Group revised its 2026/27 farmgate milk price forecast to NZD 9.25 per kgMS, with a new range of NZD 8.00‑10.50. The update follows an 11 percent decline in Global Dairy Trade auction prices and higher milk output in key exporting regions.

CEO Richard Allen said, “GDT prices have fallen 11 percent 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.” He added the co‑op expects a strong start to the New Zealand season but noted “the potential for the El Niño weather pattern to impact global supply as the season progresses.”

The 2025/26 forecast remains unchanged at NZD 9.60‑9.80 per kgMS. Fonterra said the revision reflects softer‑than‑expected demand amid strong global supply and that it will continue to focus on maximising returns for farmer shareholders through flexible operations and supply‑chain management.