Fonterra Co-operative Group Ltd has today increased the midpoint of the 2026/27 season forecast Farmgate Milk Price from NZD 9.50 per kgMS to NZD 9.75 per kgMS.
The Co-operative has also lifted and narrowed the forecast range from NZD 8.50 - NZD 10.50 per kgMS to NZD 9.00 - NZD 10.50 per kgMS.
CEO Richard Allen said the updated forecast was driven largely by improving demand for Whole Milk Powder (WMP) and Skim Milk Powder (SMP).
"Over the last two events, our WMP and SMP pricing on Global Dairy Trade has increased by about 5 percent and 7 percent respectively. This is driven by sustained demand from across Southeast Asia, the Middle East, Africa and China," said Allen.
“We have also had a good start to the season, which sees our sales book well-contracted for this stage of the year, despite record milk collections, giving us confidence to lift and narrow the forecast range. There’s plenty more to do, and we are continuing to monitor factors that could affect global supply and demand for dairy."
The Co-operative has also today increased the Organic Milk Price, with the midpoint lifting from NZD 14.30 per kgMS to NZD 15.25 per kgMS, and the range moving from NZD 13.30 - NZD 15.30 per kgMS to NZD 14.50 - NZD 16.00 per kgMS.
Allen added that Fonterra teams will leverage scale and flexibility to adapt and ensure they capture the most value for farmers’ milk.
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