The co-op raised its midpoint from $9.25 to $9.50/kgMS and narrowed the range to $8.50–$10.50, citing stronger GDT results.
Fonterra has revised its 2026/27 Farmgate Milk Price forecast, lifting the midpoint and narrowing the range amid improving global dairy commodity prices, Dairy News reports.
The co-operative’s forecast midpoint has moved up from $9.25 to $9.50 per kilogram of milk solids (kgMS), in New Zealand dollars. Alongside the higher midpoint, Fonterra also lifted and narrowed its forecast range — from $8.00–$10.50 to $8.50–$10.50/kgMS — signalling more confidence at the lower end while keeping the top of the range unchanged.
Why the forecast improved
Fonterra chief executive Richard Allen says the upgrade reflects a stronger run of Global Dairy Trade (GDT) auction results since the co-op’s last update in July. Whole milk powder (WMP) and skim milk powder (SMP) — two of the most important products for New Zealand’s dairy export mix — have both improved at recent auctions.
«Globally, we continue to see strength in demand», Allen says, pointing to sustained buyer interest as a key factor supporting the higher forecast.
He also credits the co-op’s own performance, noting that the improving outlook reflects continued delivery from Fonterra’s focused execution across its business-to-business (B2B) operations.
A note of caution
Despite the upgrade, Allen is careful not to overstate the certainty of the outlook. With only two months of the season complete, he says history shows conditions can shift quickly. Geopolitical volatility also remains a live risk factor that could influence commodity prices and demand over the rest of the season.
Source: Dairy News
