Fonterra trims 2025/26 milk price outlook
Strong supply and soft markets push midpoint lower
25 November 2025
1 minute read
By: New Zealand's Fonterra Co-operative Group on Tuesday narrowed the top end of its milk price forecast for the 2025/2026 season, citing downward pressure on global commodity prices as milk supply remains resilient, reported Reuters.
The dairy producer narrowed the annual forecast range for farmgate milk price — the price it pays to farmers for milk — to NZ$9 to NZ$10 per kilogram of milk solids (kgMS), from prior expectations of NZ$9 to NZ$11 per kgMS.
Fonterra's new midpoint for its milk price in the 2025/2026 season is NZ$9.5 per kgMS, compared to an earlier expectation of NZ$10 per kgMS.
The Co-op raised its milk collection forecast for the 2025/2026 season to 1,545 million kgMS, compared with an earlier outlook of 1,525 million kgMS.
The company has seen strong milk flows this season, both in New Zealand and other milk-producing nations, resulting in seven consecutive price drops in recent Global Dairy Trade events, CEO Miles Hurrell said.
