Fonterra cautiously begins to lower milk price

Fonterra has limited the milk price for the current season 2025/26. At the same time, the New Zealand dairy cooperative expects a broader milk production from its own members. The milk price forecast goes from $10 per kilo milk solid down to $9.50, a decrease of 5%. Compared to the decrease in milk price that we see here in Europe, this is limited. For example, in the Netherlands, the milk price from FrieslandCampina has already dropped by nearly a quarter since August. The current forecast price from Fonterra is still the second best ever. However, the season is still long, and various further reductions may follow. The final milk price will not be announced until September next year. Based on the price developments on the Global Dairy Trade, Fonterra's own trading platform together with NZX and EEX, further reductions are likely. In addition to the lower milk price, Fonterra also expects that its own milk production will increase this year. The forecast has been raised by 1.3% to 1.525 million kilos of milk solids. This is in line with the higher milk supply figures that have been visible in New Zealand in recent months.