Fonterra lowers 2026/27 milk price outlook

New Zealand dairy giant Fonterra on ​Monday trimmed the top end of ‌its milk price forecast for the 2026/27 season as softer-than-expected demand and robust global ​supply drag down prices.

The dairy producer ​cut the annual forecast for the farmgate milk ⁠price — the price it pays to ​farmers for milk — to NZ$8.00 to NZ$10.50 ​per kilogram of milk solids (kgMS) from NZ$8.00 to NZ$11.00 per kgMS.

"Global Dairy Trade prices have fallen ​11% 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, Fonterra said.

The company ​forecasts a ​robust start ⁠to New Zealand's season, though El Nino looms as a ​wildcard for global dairy supplies.

Fonterra ​kept ⁠the 2025/26 season forecast unchanged at NZ$9.60 - NZ$9.80 per kgMS, with a mid-point ⁠of ​NZ$9.70, following four revisions between August ​last year and May.

-Reuters