New Zealand dairy giant Fonterra has trimmed the top end of its milk price forecast for the 2026/27 season. The company cited softer-than-expected demand and robust global supply as the reasons for the revision.
The annual forecast for the farmgate milk price has been cut to NZ$8.00 to NZ$10.50 per kilogram of milk solids (kgMS) from NZ$8.00 to NZ$11.00 per kgMS. Fonterra noted that Global Dairy Trade prices have fallen 11% across the reference products that inform the farmgate milk price since the opening forecast in late May.
The company forecasts a robust start to New Zealand’s season, though El Nino looms as a wildcard for global dairy supplies. The 2025/26 season forecast remains unchanged at NZ$9.60 – NZ$9.80 per kgMS, with a mid-point of NZ$9.70.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.