Fonterra lifts forecast 2026/27 Farmgate Milk Price

Following a good start to the new dairy season, and strong improving demand for milk powders, Fonterra has added 25c to its new season payout forecast

Rural News / news

Following a good start to the new dairy season, and strong improving demand for milk powders, Fonterra has added 25c to its new season payout forecast

30th Oct 26, 9:31am by David Chaston

Fonterra has increased the midpoint of the 2026/27 season forecast Farmgate Milk Price from $9.50 per kgMS to $9.75 per kgMS.

They have lifted and narrowed the forecast range from $8.50 - $10.50 per kgMS to $9.00 - $10.50 per kgMS.

CEO Richard Allen says the updated forecast is driven largely by improving demand for Whole Milk Powder (WMP) and Skim Milk Powder (SMP).

“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.

Thy have also today increased the Organic Milk Price, with the midpoint lifting from $14.30 per kgMS to $15.25 per kgMS, and the range moving from $13.30 - $15.30 per kgMS to $14.50 - $16.00 per kgMS.

You can compare Fonterra's payout with the other dairy companies here.

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3 Comments

by redcows | 30th Oct 26, 9:39am 1793306384

Organic $15.25.
To think that around ten years ago Fonterra had put a big boot heel on organic pick up purely because management couldn't be bothered. I have nothing to do with organic milk but I'm still thankful for those that persevered both inside and outside the company.

by LouB | 30th Oct 26, 10:26am 1793309219

I'm interested in what the relative margin is between organic and traditional production systems. Typical break even $/kg ms (when i try to type that without spacing, I loose the keypad function)?

by David7 | 30th Oct 26, 10:20am 1793308849

The organic price dropped because people weren't buying organics because of financial hard ship . Fonterra pulled back it's organic production and price it was buying it from farmers as they were losing money.