Hurrell said Fonterra’s robust financial position, alongside prudent cost management and diversified export strategies, provides the cooperative with the resilience needed to sustain higher payouts. The cooperative’s balance sheet strength and reduced debt levels were key factors supporting confidence in the high-end forecast range.

Global dairy prices have recently shown signs of recovery, particularly for whole milk powder and butter, which remain core products for New Zealand exporters. China’s consumption rebound after a sluggish period has added optimism, while steady demand from Southeast Asia and the Middle East further reinforces the price outlook.

Despite the positive signals, Hurrell noted that market volatility remains a reality. Factors such as currency fluctuations, global economic uncertainty, and evolving trade conditions could still affect final payout levels. Nevertheless, he emphasized that Fonterra is better prepared to navigate these challenges than in previous years.