New Zealand dairy co-operative Fonterra has raised the midpoint of its 2026/27 forecast farmgate milk price from NZD 9.50 to NZD 9.75 per kilogram of milk solids (kgMS), Fonterra reports.
Key points:
- the forecast midpoint rose from NZD 9.50 to NZD 9.75 per kgMS;
- the forecast range was lifted and narrowed from NZD 8.50–10.50 to NZD 9.00–10.50 per kgMS;
- over the last two Global Dairy Trade events, Fonterra’s whole milk powder and skim milk powder prices rose by about 5% and 7% respectively;
- the organic milk price forecast was also raised, to NZD 15.25 per kgMS.
Milk powder demand supports the price
On 30 October, Fonterra Co-operative Group Ltd increased the midpoint of its 2026/27 season forecast farmgate milk price from NZD 9.50 to NZD 9.75 per kgMS. The co-operative also lifted and narrowed the forecast range from NZD 8.50–10.50 to NZD 9.00–10.50 per kgMS.
CEO Richard Allen said the updated forecast is 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% and 7% respectively. This is driven by sustained demand from across Southeast Asia, Middle East, Africa and China», Allen said.
«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».
Organic milk price also rises
The co-operative also raised its organic milk price forecast, with the midpoint lifting from NZD 14.30 to NZD 15.25 per kgMS and the range moving from NZD 13.30–15.30 to NZD 14.50–16.00 per kgMS.
«Our teams will leverage our scale and flexibility to adapt and make sure we’re capturing the most value for our farmers’ milk», Richard Allen said.
Source: Fonterra
